No system thrives without necessarily being compatible with its prosperity and the collapse of another system, or systems, and there is no prosperity for any commodity that is not necessarily compatible with the collapse of another commodity or commodities.
The beginnings of digital currencies were ad hoc beginnings, ones similar to the beginnings of the computer, which was used exclusively by specialized engineers until the emergence of the “Interface” to become accessible to everyone. Digital currencies were limited in their beginnings to mining operations, and “blockchain” was used exclusively to record the accounts of mining operations.
And this remained so until the year 2008, which marked the beginning of the important global launch of digital currencies, and the popularization of their uses, and it can be said that it was the beginning of its recognition as well.
The steps of the prosperity and the development of digital currencies continued to proceed in a normal way, similar to the usual steps of any product, and so on, until the Corona pandemic; to the extent that this pandemic caused a recession for the traditional economy and people’s businesses, the more digital currencies, and even the digital economy as a whole, flourished, and perhaps here the largest inference can be found: it is the peak that Bitcoin reached against the dollar recently, as it reached in recent days the price of 30 thousand dollars per bitcoin.
Here it can be asked: If the value of digital currencies continues to rise more than it is now, then what is the fate of the traditional economy and its financial currencies?
We must agree that there are two scales in the global economic balance at the present time that can be clearly seen through the news of the economy and its renewed data every day. One is the scale of the traditional economy, the other is the scale of the digital economy, and the more the collapse of the traditional economy, the lighter its scales, and in turn the greater the boom of digital currencies. Its scales have increased, which means that the digital economy grows deeper and ends more penetrating in all aspects, and so forth, until the traditional economy and all its manifestations disappear, and the digital economy takes its place in all its manifestations, with those aspects that we have known as tools and means of the knowledge system.
We can foresee the future through the current data regarding digital currencies, as Bitcoin will represent the hard currency that corresponds to the dollar in the traditional economy, and the next bitcoin of digital currencies will also be difficult currencies, but in a hierarchy, with Bitcoin imposed by the marketing and advertising activities that Bitcoin enjoys.
As for the rest of the digital currencies, while each country in the world will have its own digital currency, which is what many countries have now legalized, the value of these special digital currencies cannot withstand the hard global digital currencies that will become a standard in global economic transactions, and a standard that is traded. In and through the economy, just as it has always happened with the dollar, and to the extent of the economic strength of any country to the extent that its own digital currency is worth a large value against Bitcoin, the strength of its economy can be measured through this criterion. And to talk the rest.
Author : Manahel Thabet
Published January 08, 2021
Al Bayan Newspaper