Arif Efendi is a London-based businessman who shares his views on cryptocurrency and Sweden’s call for the EU to prohibit Bitcoin mining.
Arif Efendi is a businessman who shares his opinion about cryptocurrency.
Arif Efendi a businessman says that cryptocurrency has come under scrutiny in recent years. Arif Efendi According to Arif Efendi cryptocurrency has been in the news recently.
However, he claims that cybercash still has lots of positive aspects to provide.
What's all the fuss about? Cryptocurrency.
Although cryptocurrency has existed for more than a decade, it is only in recent years that it has become a household name.
Bitcoins have been featured in numerous news reports and recently became the talk of the town due to the fact that Sweden wants to ban the European Union (EU) to prohibit mining Bitcoins.
What's all the fuss about and what is the real meaning of cryptocurrency?
After years of study and investment this is a question I am often asked. Let's get together and dive into the world that is cryptocurrency.
What is cryptocurrency?
Digital money is cryptocurrency at its most basic. There are no physical coins or paper bills using cryptocurrency. All money is in the form data.
A cryptocurrency is a type of digital currency that is designed for use by peer-to-peer networks, without any central authority. Bitcoin is the most well-known cryptocurrency.
Bitcoins and cybercash have elements decentralization as they work without a central banking system or an administrator.
The decentralized control can be linked to another characteristic of cryptocurrency greater security and anonymity due to cryptography.
The advantages of cryptocurrency over conventional currencies. It is for instance, it cannot be devalued or counterfeited because of the cryptographic protocols that ensure the existence of cryptocurrency.
Also, cryptocurrency accounts are not allowed to go "in red" since there isn't an balance on the account where a deficit can be incurred.
In addition, it allows fast transactions between people anywhere in the world with a acceptable level of trust.
What is the difference between cryptocurrency and stocks?
Cryptocurrency is distinct from stocks in that cryptocurrency is a form of digital currency that makes use of cryptography to secure transactions.
They can be utilized as an uncentralized currency. They are not subject to any central banking system. The cryptocurrency market is a place for investing and trading.
Arif Efendi The stock market is the place where brokers and dealers trade stocks. Stocks represent ownership interest in a company therefore it is able to be sold or traded at a profit based on the results of the business.
Prices for stocks fluctuate daily because of demand and supply as well as the general health of the economy, investors' perceptions of value, the possibility of company growth and other factors.
Arif Efendi But, the prices of cryptocurrency rarely fluctuate more than percent per day.
Why is cryptocurrency so popular?
It is rapidly growing in popularity in the present day society. The benefits that cryptocurrency offers are the reason why investors are making investments in it. Although cryptocurrency information is available for many years, it is now receiving more recognition.
The cryptocurrency gives users total control over their money. It's not tied to banks or financial institutions. Arif Efendi It's also distributed, which means nobody, no group or person can manage it. It is the ability to manage your money that draws many people, including me.
Why is Sweden so determined to have Bitcoin mining banned by the EU?
Despite its popularity it is not being thought of by EU legislators. Arif Efendi The EU is currently looking into the possibility of introducing legislation that would stop energy-intensive cryptocurrency miners from being used across the EU.
Arif Efendi Because cryptocurrency miners are using electricity supplies in Sweden for their own gain Legislation is being considered. This has become a popular way of mining cryptocurrency in recent times.
When Bitcoin was first introduced in the early 2000s, it was mined on computer systems that were able to process normal data however, it soon turned out that the process was way too slow. Thus, today, cryptocurrency is produced by huge mining pools. These mining pools consume enormous amounts of money and this is the reason it is a concern for the Swedes.
Open letter to EU: Bitcoin mining in Sweden consumes 1 TeraWatt every year, according to authors. The people who wrote the letter are Bjorn Risinger (director of the Swedish Environmental Protection Agency) and Erik Thedeen (director of the Swedish Financial Supervisor Authority).
The amount of electricity produced can power up to 200 homes. Bjorn Riser and Erik Thedeen say that cryptocurrency mining consumes more of Sweden's energy.
"If we were permitted to mine crypto-assets within Sweden and the EU, there's an opportunity that the renewable energy sources that we have available will not suffice to meet the necessary climate change," the Swedes wrote in a letter to the EU.
Erik Thedeen (Bjorn Risinger) and Erik Thedeen (Erik Thedeen) refer to Sweden's climate commitment in the 2015 Paris Agreement.
Coins and climate coexist
While cryptocurrency is more popular and talked about than ever before in the media however, it's still a subject of controversy.
It's an absolute pleasure to me, too, to see the endless possibilities that cryptocurrency has. It's here for a long time, and I believe it will be the subject of a lot of news within the next few years.
I really hope that , in the meantime, we can work together to ensure that cryptocurrency and the climate coexist.