✴️ Introduction
In 2009, something strange and obscure called "Bitcoin" appeared, which is not subject to a central bank, is not printed, and is not stored in bank vaults. At that time, no one took it seriously. But today, cryptocurrencies have become an economic reality that cannot be ignored, amidst a frantic race between investors, innovators, and governments.
But the more important question is not about prices, but about the impact: How are cryptocurrencies reshaping the global economic system? This is what we will try to explore in this comprehensive article.
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🧩 First: What are cryptocurrencies and their types?
🔹 Cryptocurrencies:
They are encrypted, decentralized digital currencies that rely on blockchain technology. Such as:
• Bitcoin: The first and most famous cryptocurrency.
• Ethereum: The currency that introduced the concept of smart contracts.
• Solana, Cardano, Ripple, and others.
🔹 Stablecoins:
These currencies are pegged to traditional assets (like the dollar or gold) to reduce price volatility, and the most famous of these are:
• USDT (Tether)
• USDC
• DAI
🔹 Central Bank Digital Currencies (CBDCs):
These are currencies issued officially by governments in a digital version of the local currency, such as:
• Digital Yuan (China)
• Digital Ruble (Russia)
• Digital Euro (under testing in Europe)
• The digital "Ena" (a proposed Arab model)
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🕰️ Second: A historical overview – from lines to a trillion-dollar market
• 2008: "Satoshi Nakamoto" published a research paper titled Bitcoin: A Peer-to-Peer Electronic Cash System.
• 2010: The first Bitcoin transaction to buy pizza for 10,000 BTC.
• 2017: The first price surge, Bitcoin reached nearly $20,000.
• 2021: The market value of cryptocurrencies exceeded $2 trillion.
• 2024: More than 20,000 cryptocurrencies and hundreds of platforms.
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🔧 Third: What makes cryptocurrencies possible?
💠 Blockchain technology:
A digital, distributed, and transparent ledger that records all transactions without the possibility of modification.
🔐 Encryption:
Every transaction goes through a series of encryptions to ensure security and privacy.
⚙️ Smart Contracts:
Software that automatically executes the terms of the contract once fulfilled, without intermediaries.
⚡ Proof of Work vs. Proof of Stake:
• Proof of Work (PoW): Like Bitcoin, it consumes a lot of energy.
• Proof of Stake (PoS): Like Ethereum 2.0, it is more efficient and less environmentally harmful.
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⚖️ Fourth: Challenges facing cryptocurrencies
1. High price volatility
2. The absence of a unified global regulation
3. Fraud and cyber attacks
4. Illegal uses (money laundering, illicit financing)
5. Environmental pressure, especially in mining systems
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💡 Fifth: The opportunities opened up by cryptocurrencies
• Facilitating international financial transfers quickly and at a low cost.
• Promoting financial inclusion, especially in poor countries.
• Building a decentralized economy controlled by individuals, not just governments.
• The possibility of building Islamic or alternative financial systems outside the usury system.
• Huge investment opportunities despite their high risks.
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🔜 To be continued...
I will complete the remaining topics in the next response:
6. Government digital currencies (CBDCs)
7. The future of cryptocurrencies
8. The role of the Arab and Islamic world
9. Analytical conclusion
