Nadia Al Dabbas - Kuwait
Despite his ride - like many others - the wave and his fight in the currency of digital configuration, Abdullah Salloum was not among the thousands of Kuwaitis who lost in those speculation an estimated five hundred million dollars during the four months only until February.
Twelve thousand Kuwaitis enthusiastically accepted the "currency" trading platforms in the hope of making a quick and profitable profit to find themselves and after doubling their capital to successive losses.
But Salloum, a specialist in statistical analysis, was not only based on his scientific achievements - he holds a bachelor's degree in computer science and a master's degree in business administration - but his experience in speculating in gold and oil has allowed him to enter the world of "
He set up a sequential algorithm for a few years to allow him to keep his statistics safe, giving him accurate profits. But he stopped speculating only three months ago to avoid loss after being warned by the algorithm of a sharp fall after the currency arrived. Virtualization to its peak by reaching about twenty thousand dollars per unit.
In his speech to Al-Jazeera Net, Abdullah attributed the reasons for the loss of many Kuwaitis to the fact that they did not master the technical analysis, and did not study the speculative process in the "formation".
After seeing that some buy this virtual currency and make a profit from it they bought, the spokesman said - and after the sharp drop they sold, which led to their loss.
| Salloum: Lack of understanding of speculative operations in Altkwin cause of loss of many Kuwaitis (Al Jazeera) |
Reason for rejection of the composition
In his view, Abdullah believes that many people believe that Bettkin is a fight against the central banks of countries because they may enter into prohibited transactions such as weapons and drugs. However, the central reason in his view lies in the fear of returning to the financial system before 1971, The "Nixon Shock," when former US President Richard Nixon canceled direct international conversion from the dollar to gold, so Batekwin is fighting to avoid becoming a substitute for government-run currencies.
The economic researcher and writer Mohammed Ramadan reduces the reasons for the large decline in the global exposure of the previous period, according to a report pointed out that the use of this currency in the virtual purchases have declined in recent months by about 80% of what was at the top, In the use of "composition" in asset and service purchases, resulting in a significant decline in value.
On the other hand, the default currency is not subject to legal cover or to a regulator that oversees its trading. However, once it is converted into cash liquidity, central banks and regulators intervene and ask the trader where do you come from? And here it has to prove that it was not contaminated by money laundering, according to the clarification of Ramadan to Al Jazeera Net.
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Risk
Ramadan believes that the risks of investing in Batuin are too great because of the ups and downs of their value. Another factor is the presence of many companies that are harassing traders after depositing a portfolio claiming to steal important digital keys that prove to be lost. everything.
"What exacerbates the problem is the absence of any binding law for those companies to return the lost amounts," he said.
He predicted that the fate of the "formation" will come to an end gradually, because it is just a bubble as he described it, since there is no logic in the growth of a currency and grow and flourish as it defies governments, as he put it.
In conjunction with the large rise in the currency of "Atquin" earlier this year, the Central Bank of Kuwait and the Kuwait Stock Exchange warned several of the consequences of the drift behind this virtual currency after the rush of many Kuwaitis to buy because of the high record value.
The warnings were not limited to regulators, but many experts have warned traders not to underestimate the successive rise of the currency. These include the financial and economic analyst Mitham, who attributed the rise in the value of "formation" to the rise in the offer and the understanding of some traders Mechanisms of action in this currency.
| Mitham person: dealing with the healthy is not safe (island) |
Unsafe handling
In order to eliminate the confusion between electronic and virtual currencies, Metham explains that the electronic currency is part of the serial cash issued by central banks but does not carry paper, which makes it part of the official currency, where countries resort to it to take advantage of technology in simplifying the procedures of buying and selling Electronically, especially in light of the spread of smart devices from laptops and laptops and mobile phones.
According to the person, the consumer can through e-currency buy through electronic stores without the need to withdraw cash.
But dealing with the good guy says the spokesman himself is not safe because they are not guaranteed by central banks and therefore have no credibility in business dealings.
In the view of the person that the current technological development requires to be accompanied by government procedures in many respects, including legislation on the circulation and regulation of digital currency.
There is also a complex complication between the roles of some regulatory bodies and the Ministry of Commerce. Many companies suffer from regulatory duplication. Here, it is necessary to take into consideration the need to transfer some of the functions related to brokerage companies from the Ministry of Commerce to the Capital Market Authority .
In contrast to the opinion of Ramadan does not see the person approaching the completion of the end, likely to continue but the risk of trading will remain high, adding that it will remain subject to the same trader, who finds himself the ability to bear these risks to continue, but no one will protect.