Any developer of projects in the field of "blockchain" is unmistakable that blockchain technology will change many sectors of our lives today, and the most prominent and fastest affected sector is the financial and banking sector, where the digital currencies based on blockchain technology represent the largest and fastest growing applications.
In this article, we highlight some of the misconceptions and repeated inquiries related to digital currencies, which we will try today to discuss and clarify in the form of points / "illusions":
1- Not real assets
Digital currencies are accused of being illusions, and they do not represent any real assets, but in the current era, everyone has come to accept that a set of software codes represent a lot of value and benefit to people.
For example, Google's search engine is software on the Internet, and it does not represent any tangible assets, and despite this, its value is known far and wide.
If we create a value that benefits society through a set of software codes, it is already known nowadays, and it is no longer associated with the traditional real-world economy, and this is precisely what gives digital currencies their distinction and strength.
In fact, the opposite is true. The decentralized economy based on blockchain technology came as a revolution against the current problematic capitalist economy, and so traditional banks confronted it fiercely at first.
The "blockchain" economy is real support for people who want to be free from the control of capitalism.
2- Save money ... a lost destination
One of the most important societal goals is to preserve, develop and increase money, and the reality of government funds is that they have become a tool in the hand of major countries to put pressure on other countries, or a tool for pressure from dictatorial governments and oppression and oppression of their citizens, through sanctions and preventing the opening of bank accounts, and sometimes reaching the point of not delivering the money owed to their owners and located in Their bank accounts, as happened recently in some Arab countries.
On the other hand, the person is responsible for his money and keeping it in currencies based on blockchain technology, and this is one of the important societal intentions in terms of enhancing individual responsibility.
Digital currencies are accused of being a field of loss of rights and a lot of fraud and manipulation, but the current reality is that the money issued by governments in them is much more manipulative than currencies based on blockchain technology.
Some claim that gold and silver are the only two minerals that have value and accept circulation, but modern technology has opened the way to create value from things that no one could have imagined, and it has become a reality we live in today.
Limiting the negotiable value to gold and silver is appropriate a thousand years ago and not in today's world.
A specific mobile app or website can be valued in the millions once it achieves a certain benefit for users.
3- Bitcoin is a medium without value
Even if we consider that the only value of Bitcoin as a means of trading, it is a safer and easier way, as it is allowed for use by all people, and more transparent and private than all traditional means.
4- No assets compensate shareholders' losses
In all modern technology companies (Google, Facebook, Twitter, ...) the company's assets are the minds of engineers, programmers, and the software group that the company created, and in the event that the companies collapse for one reason or another, there are no fixed assets that can be sold to compensate for the losses of the shareholders.
This applies to cryptocurrencies;
Its value comes from the software in it, and the profit and loss distribution mechanisms are illustrated and controlled by precise, decentralized mechanisms activated by blockchain technology.
5- Wasted rights and rampant fraud
Digital currencies are accused of being an area of loss of rights and a lot of fraud and manipulation, but the current reality is that the money issued by governments in them is much more manipulative than currencies based on blockchain technology;
People have more rights in blockchain money than government issued money, and the ability to manipulate them is less, because all operations are recorded and documented on the blockchain network, and they can be tracked and any manipulation practiced by any party can be detected.
6- Invalid transaction
The part of immediate dealing in currencies "hand in hand and equally" is achieved more in Blockchain currencies than in government currencies. We all know that transferring an amount from an account to an account, from currency to currency, or from country to country is only done through a change in numbers only, and no transfer is made Money or delivery and delivery, while in blockchain currencies, the actual transfer is made from one digital wallet to another, and is verified via blockchain technology.
Delivery and receipt are actually, promptly and without delay and with full transparency, and anyone can monitor and verify them.
Many cryptocurrencies are projects that support real and real technology that affect people's lives, trade, industry, and technologies
7- Marketers without merchandise
There are those who believe that there are marketers for digital currencies even though they have no origin in reality, and the truth is that most digital projects based on the blockchain do not have their original marketers, because they simply do not belong to anyone, they are the property of an integrated community of developers, miners, and acquirers, and their opinion and decision are taken. A community in every proposed change to the mechanisms of the project.
Marketers are usually there to view additional services based on this technology, and sometimes they are fraudsters who are marketing bogus projects.
8- It does not have a positive effect
Many digital currencies are projects that support real and actual technology, and affect the lives of people, trade, industry and technologies, the simplest of which is smart contracting, but if we overlook that and assume that it is not there;
The current banking sector also applies to the saying that it does not have a positive impact in industry, trade and technology, and with this its global size is about 7 trillion dollars, and the size of the Islamic banking sector is more than a trillion dollars, this does not criticize any system, but rather confirms people's need for banking / financial services That is imperative for the growth of trade, industry and technologies.
9- Millions are leaving our regions and going to unknown hands
The issue of transferring assets from our homelands to other places in order to buy Bitcoin needs two clarifications: The first is that, unfortunately, there is no infrastructure in our countries that attracts investments, and there is no real development of technology related to Blockchain (in programming or in manufacturing) in our countries, so it is natural for money to transfer to places where technology is made. And the real development, and the second point - which is the most important - when a person owns Bitcoin or other currency, he does not transfer his money to another country, he is in fact transferring his money from the authority of others to become in his power alone, and he can control it via the Internet anywhere around the world.
In addition, we are in dire need of many very important industries and software to develop blockchain technology and cryptocurrencies, which no one thinks of investing in our region.
Either because of not knowing its importance, or because of the suspicions that some people cast in this field, which are delaying its growth and prosperity in our homelands.
10- Absent information and details
Digital currencies are accused of being still unknown, and in fact the development of digital currencies based on blockchain technology has clarified its status and fate, and has become clear in all its details. Since the launch of Bitcoin in 2009 - as the first digital currency - the mechanisms of currency work have become known and clear, and their risks and advantages are evident. What has not been clarified is the current global system’s handling of it. It began with disdain and belittling of it, then moved to fight it and criminalize it, and in recent months it began to adapt to it and seek to benefit from it.
11- Absence of officially licensed companies
The existence of a licensed company that owns a digital currency means that there is a small group that owns the decision of the fate of this company, and it also means that there is a country that is able to close this currency just because it does not comply with its financial policies, this conflicts with the decentralization for which blockchain technology and digital currencies came.
This technology has come as a revolution to the current financial system, and the cryptocurrency community does not think to use the tools of the current financial system, but rather intends to impose its tools and mechanisms on everyone.
12- Buying currency and obscene deception
The existence of fluctuations in the price of digital currencies is known to everyone who enters it, as the matter is no longer deceitful or deceitful, and like any stock or project, its value may rise or fall, as happens with most technology companies today
Fluctuations in price do not trigger the product / project, and the cryptocurrency community believes that many price fluctuations are behind those who target digital currency projects for the purpose of supporting traditional financial markets.
13- Money controls are far from digital currencies
There is another view of digital currencies that is worth thinking about, instead of looking at them as new currencies, why are they not viewed as new projects based on modern blockchain technology, it is known that every digital currency is practically a stand-alone project and has its goals, mechanisms and added value to society;
For example, the Ethereum currency was launched to activate the smart contract system and decentralized applications (Smart Contracts and Decentralized Applications) and the Litecoine currency provides a solution to accelerate the transfer operations that were considered relatively slow in Bitcoin, and the Tether currency is a currency that is always valued in dollars, and is used by the community. Cryptocurrencies for dollar conversion quickly, securely and within the blockchain world.
These are examples only and there are currently more than 6 thousand digital currencies, and each of them represents a specific project.
The witness here remains that anyone investing in the shares of a project from these projects, increasing the value of the share, and then selling it is a legitimate and acceptable matter everywhere.
14- Between criminalization and prohibition
The calls for criminalization or prohibition of digital currencies originate from several perspectives, and most of them can be summarized as follows:
Ignorance of its real mechanisms and benefits, and focus on some of the negative points in them.
Fear of economic sanctions, as many international banks in the previous period used to prohibit the use of digital currencies or even transfer funds to companies that deal with them, and these banks close accounts and force their branches in our homelands to do so.
Fear of taking decisions bypassing the superpowers;
Many decision-makers in the third world countries do not see that they have the ability to take a decision that is not in line with the desire and policy of the superpowers.
Now that digital currencies have imposed themselves as a real alternative to the traditional economy, the major banks and the great countries have begun to deal with them in a positive way, which will positively affect their presence in our Arab world.
It is also important to correct some terms;
Instead of using digital currencies, it is preferable to replace it with the term "digital assets", and the terms are translated in line with our culture, thus facilitating the adoption of this technology, which is beneficial for its spread and prosperity.
In conclusion, we call on the decision-makers in our region to be the owners of the initiative and to quickly adopt modern technology to benefit our societies before we miss the train too much.