Bitcoin and The Abolition of Monetary Centralization

Bitcoin and The Abolition of Monetary Centralization

Manahel Thabet
Manahel Thabet

Throughout history, the financial economy has undergone multiple transformations, with the barter system standing out as one of the earliest. While efficient in facilitating transactions, it lacked a purely mathematical economic foundation and was linked to language. Despite its advantages, such as decentralization, it faced challenges like the absence of a standardized measure for commodity exchange, simultaneous conflicting desires of buyers and sellers, and difficulties in value storage and payment.

The evolution continued with the introduction of currency coins in the 6th century B.C, followed by the banknote system after the invention of printers. However, it was the digital monetary economy, born from the technological boom of modern times, that brought about a significant shift akin to the transition from paper journalism to digital journalism.

The move towards a digital monetary economy combines the advantages of the barter system, such as the lack of monetary centrality, with the protection of digital cash transactions against counterfeiting, a flaw in the paper cash system.

In the context of adapting to developments and changes imposed by modern technology, the shift towards electronic currency becomes inevitable, marking the principles of a civilized society’s ability to embrace change. Global stock exchanges are now moving towards absorbing digital currencies and formulating regulations governing their functioning.

The history of the digital economy and digital coins traces back to 1990, coinciding with the technological boom. Electronic gold emerged as one of the earliest digital monetary instruments in 1996. The concept evolved into cryptocurrencies, unregulated digital money controlled by developers and accepted within specific virtual societies. Cryptocurrencies are characterized by their resistance to manipulation, issued through universally agreed coded code, with Bitcoin being the first cryptocurrency in 2009.

Bitcoin, with its decentralization and resistance to manipulation, has made significant strides in the digital cash markets. However, despite its growth, it doesn’t eliminate banknote transactions but operates in parallel with them. Notable initiatives have emerged, such as the cash portfolio project in various countries, with Germany leading the way by dealing with and taxing digital currencies.

In terms of the digital economy’s fruitful aspects, digital cash portfolios serve as a gateway to the development of the knowledge economy and cultural investment. As electronic monetary transactions thrive, the knowledge and cultural markets flourish. Digital currency becomes the conduit for economic interaction, injecting new life into various sectors and paving the way for a promising future.


Author : Manahel Thabet

Al Bayan Newspaper

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