Will cryptocurrencies, especially Bitcoin, occupy the place of gold and dollar in buying and selling, or have cryptocurrencies been exaggeratedly exaggerated and won't replace gold and the dollar?!

21 JAN 2022

The world is in the age of technology and technology is in constant progress, and the digital world has become expanding and growing day after day, and there are no limits to its expansion, which includes all areas of our daily lives from here, cryptocurrencies appeared during the past years, the most important of which was Bitcoin, whose market value rose to nearly $800 billion and competed with gold in the size of the market value as well as the dollar due to the development of technology and methods and ease of buying and selling through these cryptocurrencies around the world But by time it began to appear that relying on cryptocurrencies as an alternative to the dollar or gold is one of the seventh impossible to implement on the ground for many reasons, what are they?!

Among the reasons why it is difficult for cryptocurrencies to be a substitute for the dollar:

1️⃣ Decentralization and no laws to which this cryptocurrency is subject, which of course violates all financial rules in the volume of reserves for these currencies, as is the case in the current system in dollars and gold, and this is a negative point in encrypted currencies

2️⃣ The US 🇺🇲 and the American federal financial system, especially, will not allow the growth of these currencies and neglecting dependence on the dollar, which is the secret of Washington’s position on the throne of the world economy

3️⃣ It is very expected that the American economic system will issue an encrypted currency that will be integrated with the dollar so that there is no serious harm to the marginalization of the paper dollar in transactions. Therefore, the issuance of the digital encrypted dollar is inevitable, and this if it happens will pull the rug against the current encrypted currencies such as Bitcoin and others

What we have seen in the past few days in Kazakhstan has stopped the production of Bitcoin mining in the second largest mining factory in the world due to the events that took place in this country, where the Bitcoin mining factories stopped, as well as the disappearance of millions of Bitcoin from Kazakhstan, causing a violent drop in the value of Bitcoin As confidence in this encrypted currency has decreased and it has become less secure in the event of an internet outage and may cause the disappearance of what some of these encrypted currencies own This clearly reveals one of the biggest flaws in cryptocurrency, which has been repeated in recent times by robberies of billions of dollars around the world by a hacker stealing bitcoin

4️⃣ So far, most countries of the world do not recognize encrypted currencies such as Bitcoin, which have serious flaws, the most important of which is the presence of some loopholes that outlaw groups may exploit to transfer money without knowing who sent and who was sent to it around the world Here lies the danger, so we have heard recently that some Arab countries and around the world have issued cryptocurrencies that are subject to the laws of these countries and like that there are no problems, but the danger in cryptocurrencies such as Bitcoin and others refuse to give any security information, so many countries in the world find it difficult to recognize them

The urgent question here: Will cryptocurrencies such as Bitcoin and others remove the rug against the dollar and gold?!

Impossible, in the near future, the dollar will remain the currency that is considered a standard for buying and selling basic commodities on global stock exchanges, and the Federal Reserve may issue a cryptocurrency combined with the dollar, and the same thing is gold. Currencies will not be able to pull the rug out of it.

So I expect the following:

1️⃣ The dollar will continue as it is now the first currency with the expectation that America will issue the crypto-dollar, which if it happens, Bitcoin and others will be struck by a knockout because America will consider the crypto-dollar as its official currency with the traditional dollar

2️⃣ The spread of cryptocurrencies, especially with the launch of the encrypted dollar, will not affect gold, which will continue to be demanded, and no financial system can dispense with gold, neither now nor in the foreseeable future (unless there is a radical digital transformation, and this is very difficult because it needs infrastructure in the whole world)  Gold remains one of the most important and indispensable assets of the economy

This can be summed up as:

Based on the data I mentioned, cryptocurrencies will not be able to replace the dollar or gold, but I see in the future there are cryptocurrencies that will expire and crypto currencies will come backed by the governments of countries that are subject to their laws.