bitcoin an investment opportunity or just a bubble?
After the rise of the digital currency of “bitcoin”, which has been close to 1000% since the beginning of this year, after the price rose from 968 dollars at the end of 2016, to exceed $ 9700 now, the debate raged about the nature of this wave, which many described the bubble while others found investment opportunities Must be snatched.
In an interview with Al-Arabiya, Azim Al-Amawi, head of research at AswagalMal.com, said it was too early to judge the rise in KFH. He said that during 2017 there were significant events that made KFH now classified as assets, As well as the emergence of mutual funds traded on the stock exchanges, where the number of hedge funds dealing with the “bitcoin ” 100 funds so far, while many institutions began to be convinced in the digital currency and adopt.
Is anxiety justified?
“The speed of the rise does not worry me for the main reason,” said AswagalMal.com’s head of research. “It’s only nine years ago. The same rise was made in 2013 but the price did not exceed $ 1,000. What is causing this aura now is the 10,000-pound bitcoin approach Dollars “.
He explained that the value of the bitcoin comes from the fact that the protocol on which it has determined the final offer for all units of bitcoin produced at 21 million units, unlike the central banks that print the paper currency without a ceiling, while it is available so far 16 million and 700 units only At 160 billion dollars.
He continued: “According to the system subject will be access to the last Petkwain mining in 2140.”
He added that the system “bitcoin” tightly controlled and transparent, where it is based on mathematics, programming and smooth clusters, noting that the markets are experiencing for the first time an uncontrolled currency.
The Umayyad forecast that volatility in the currency of the “bitcoin ” will disappear as liquidity increases and that the gains will continue in 2018 as liquidity continues to flow towards the currency.
He pointed out that the price of “bitcoin” saw 3 corrections in 2017 and fell by 41% and 31% and 29% in November, thus correcting itself and continues to rise depending on the flows in the markets.
The Gulf central banks have warned all traders in the Gulf countries of the circulation of the “bitcoin” and the official warnings have increased in recent months as the Saudi Arabian Monetary Agency (SAMA) that the circulation of the currency offers traders negative consequences, and this type of virtual currency is not a currency Certified within the Kingdom.
The United States, the world’s largest economy, has yet to officially recognize the digital currency. Germany is the only country to officially recognize Petequin as a form of electronic money. The German government has said it can tax the profits of companies that deal with PeteCwin, While individual financial transactions remain tax-free.
In China, after its virtual currency has boomed in recent years, and its domestic exchanges have allowed users to conduct free transactions, attracting investors and speculators who have boosted demand, regulators have launched a crackdown on the sector amid concerns that Chinese investors will intensify their speculation in virtual currencies.
The regulators have also banned so-called “currency initial” or the creation and sale of digital or symbolic coins to investors to finance emerging projects.