Also, these types of currencies operate independently and without dependence on a central bank. Since this industry does not have much history in our country, there is no knowledge about the currency of currencies in public opinion, and so far this industry has not been able to grow and expand in the country.
But these days, the digital currency market is happy; In such a way that the price of cryptocurrencies has grown significantly and people’s attention and luck to this market has increased. In addition, statistics show that Bitcoin has set a new record and its value has exceeded $ 24,000.
Also, the value of this currency has increased about 1.74 times since the beginning of the year, and digital currency traders believe that Bitcoin can experience new channel breaks.
In this regard, Alireza Shamkhi, an economist, explained to ISNA the reasons for the jump in digital currency prices: “After the outbreak of the coronavirus, governments injected a lot of liquidity to deal with the recession, which led to a weakening of national currencies. People tend to turn their money into safe-haven assets like gold and bitcoin.
“Until last year, only real people entered the cryptocurrency market, but for about a year now, smart currencies, a very large amount of corporate capital, have been on the market,” he said, asking why digital currencies have performed better than gold in an unprecedented way. Has had a significant impact on the rise in bitcoin prices.
Governments oppose buying and selling cryptocurrencies
“Governments have typically been opposed to buying and selling cryptocurrencies,” he said. “Governments have tried to restrict trading in this market, but with the advent of corporate capital, governments are being forced to legitimize these markets soon.” Accept that this is what insures investing in cryptocurrencies.
Shamkhi added: “In recent months, world-famous banks have added cryptographic services to their list of services.” Also, the electronic payment platform for purchasing goods and services has been developed and several important sites have started selling services using cryptocurrencies. All of this together has increased the legitimacy of cryptocurrencies, so it is natural for prices to jump in this market.
Regarding the impact of social networks, he said: “The next point is the role of social networks that famous activists and traders of the bitcoin market used this space and tried to introduce people to this field.” The sudden growth of the last week is largely due to this issue.
Weakening of central banks with the growth of investment in digital currencies
Shamkhi said that the most important effect of the growth of investment in digital currencies is the weakening of central banks and said that the world’s central banks are opposed to expanding the use of currency cryptocurrencies as carriers of value and only want to use them as a payment platform to maintain their sovereign role.
At the end of his speech, the cryptocurrency expert noted: “Whether the central banks accept it or not, the people of the world value this cryptocurrency.” In addition, many reputable sites around the world sell their services with bitcoins and other cryptocurrencies, indicating that they also value these currencies. In the context of centralized financial systems, it is now possible to provide financial services such as lending, selling insurance, and basically central banks are not able to regulate them.