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ARIF EFFENDI EXPLAINS HOW CRYPTO INVESTMENTS RULE THE MARKET

The stock market witnessed an massive sell-off in stocks along with other risk assets in the early months of 2022. Arif Efendi explains that this was due to the rising rate of inflation, expectation of an increase in rates, and tensions between Russia and Ukraine. In a volatile economy, investors need to diversify their portfolios. This is where crypto investment comes into the picture.

Are Cryptocurrency an investment or a currency? investment?
Cryptocurrency is a virtual or digital currency that is stored in a digital wallet. Arif Efendi believes that it makes it easier to send international payments without the requirement to carry physical cash.

Transactions using cryptocurrencies are secured through a method known as cryptography. This means that it is impossible for users, according to Arif Efendi, to make a double-spend.

The most striking feature of the digital currency is the fact that it's not issued by any central body. Therefore, it is free of government interference. It is possible to mine the currency and then buy it at an exchange, broker or any other intermediary.

The most popular cryptocurrency are Bitcoin, Ethereum, Litecoin, and Ripple. Every coin has its own use.

In addition to being a currency for payment in addition, cryptocurrency can also be an investment choice. Digital coins are popular among those who want to make money. Investors buy and hold for a brief or long time, and then sell it off whenever prices rise. Although cryptocurrency can be restricted in certain countries, El Salvador was to be the first country to have the legal right to utilize Bitcoin .

Arif Efendi on Printed Currencies versus Cryptocurrencies
While cryptocurrencies and fiat currencies allow for payments, they are not exactly the same. Arif Efendi explains the differences below.

Regulation

Because fiat currencies are issued and controlled by central banks, they are able to be utilized as legal tender. They are legal to use as tender. But, they can be devalued as time passes because of government policies.

Cryptocurrencies are digital assets that are not centralized. They are digital currencies that are able to be utilized independently of government. Certain countries oppose crypto because they fear that it will be used for money laundering and other illicit activities.

Form of Exchange
While fiat currency can be exchanged electronically as well as physically, cryptocurrency is not able to be traded digitally. Because it is embedded with a series codes, it cannot be exchanged in either electronic or physical form.

Storage Method
Fiat currencies can be kept in banks or in home safes. Cryptocurrencies are stored in crypto wallets. Fiat wallets permit you to transform government-issued currency into digital assets.

The advantages of cryptocurrencies over paper currency
Cryptocurrency offers a lot of advantages over printed currencies. Arif Efendi outlined that these benefits include:

Decentralized System
Crypto is built on an uncentralized system. It is not possible to control its circulation or value. Each transaction is recorded in the ledger in the same way banks record transactions. The ledger does not divulge any personal information. This helps prevent the loss of data and fraud.

It serves as a hedge
To hedge against the effects of inflation, digital assets such as Bitcoin can be utilized. https://www.alamy.com/stock-photo-hilye-bakkal-ahmed-arif-efendi-139964997.html During inflation there will be more money available, however scarce goods will be more expensive.

Bitcoin is designed so that it remains scarce regardless of what happens to the economy. So, thousands of dollars could be used to purchase a few coins. Additionally, there is a good chance that coins will appreciate in value.

Payments across Borders
You can send money instantly to countries around the world using cryptocurrency. It's easy to transfer money and there are no transaction fees.

Printed currency, on the other hand, can take days or even weeks to reach the recipient. These transactions can be expensive because of the high fees. Certain transactions are rejected because of tensions between countries, regulations, or sanctions.

Cryptocurrencies can be dangerous
Arif Efendi lists some of the possible risks with the use of cryptocurrency.

Extreme Volatility
Cryptocurrency can be unpredictable. In a matter of months, you can accumulate significant wealth and then lose it all.

Inability to earn a return on investment
Advertising professionals and older investors typically convince new investors that they can earn high returns immediately. However, it's possible to earn lower returns on your investments if there has been consistent trading over time and you've managed your risks well.

Arif Efendi Tracking of accounts
While transactions in cryptocurrency can be locked with codes, digital trail remain. The FBI can read these codes and track accounts of ordinary citizens.

https://books.google.com/books?id=xri9e8h7zIUC&pg=PA134&lpg=PA134&dq=arif+efendi&source=bl&ots=qjDUL6r8iV&sig=ACfU3U0Xk-6nKVBRhU8kHoxauu5OoVT-mQ&sa=X&ved=2ahUKEwic1_G0hZL7AhUNx4UKHTh5Biw4ChDoAXoECBMQAw Conclusion
Arif Elfendi talks about cryptocurrency, a digital asset which can be used to make secure transactions. To diversify your portfolio, you could also invest. This article will explain the distinctions between printed and crypto currencies. It also covered the benefits of cryptocurrencies over paper currency.

Arif Efendi warns that cryptocurrency comes with its risks like other investments. https://islamansiklopedisi.org.tr/abdulbaki-arif-efendi https://dergipark.org.tr/tr/pub/cihannuma/issue/26970/283504 It is recommended that investors speak with a professional financial advisor prior to making a decision about investing.



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