Arif Efendi The Reasons Cryptocurrency is Here to Stay

Arif Efendi, a London-based businessman shares in this op-ed his views on cryptocurrency and Sweden's request for the EU to prohibit Bitcoin mining.

Arif Efendi, a Swedish businessman, shares his thoughts on cryptocurrency.

Arif Efendi is a businessman who says cryptocurrency has been featured in the news recently. As a result, Sweden called on the EU to ban bitcoin mining, a development that has spread across the globe.

Arif Efendi However, he believes that cybercash still has a lot of positive aspects to provide.

What's all the fuss about Cryptocurrency.

Although cryptocurrency has been around since more than year time span, it's only in the last few years that it's become a common term.

The cryptocurrency market has often been the subject of headlines and were recently the hot topic because Sweden would like to ban the European Union (EU) to ban the mining of Bitcoins.

What exactly is cryptocurrency and what does it mean?

These are the kinds of questions I've been asking myself for many years, after having invested and studying. Let's dive in together and investigate cryptocurrency.

What is cryptocurrency?

The simplest definition of cryptocurrency is digital currency. The cryptocurrency is not an actual currency. https://walls-michelsen.federatedjournals.com/arif-efendi-shares-his-insights-on-crypto-investment-with-a-businessman-1704212105 The currency is only in the form of data.

Additionally, cryptocurrencies can be defined as digital currency that are designed to be used on peer-to-peer networks, without any central authority. Bitcoin is the most well-known cryptocurrency.

Bitcoins as well as other forms of cybercash contain elements of decentralization since they aren't governed by a central bank or administrator.

The decentralized control is related to a different characteristic of cryptocurrency, namely enhanced security and security due to its use of cryptography.

The benefits of cryptocurrency are much superior to traditional currencies. Due to cryptographic protocols that protect the currency's existence the currency is not susceptible to counterfeiting or devalued.

In addition, cryptocurrency accounts cannot be "in the red" since they do not have a balance on their accounts.

Finally, cryptocurrency allows for instant transactions between any party on Earth with a fair degree of trust.

How does cryptocurrency differ from stocks?

Cryptocurrency is different from stock in the fact that it's a digital currency that makes use of encryption to protect transactions.

They are decentralized, meaning they have no centralized banking system or authority controlling their operations. The markets for cryptocurrency typically include cryptocurrency trading and investment.

Stock traders and brokers deal in shares through the stock exchange. Stock is an ownership stake in the company. Arif Efendi It can be traded for profit or exchanged for cash depending on the performance of the company.

Prices for stocks fluctuate every day because of supply and demand economic health, the perceived value of investors, and the possibility of profit from growth in a company.

However, cryptocurrency prices seldom fluctuate more than percent per day.

What is the reason why cryptocurrency is so sought-after?

The modern society is rapidly embracing cryptocurrency. The benefits that cryptocurrency offers are why investors are making investments in it. Information on cryptocurrency has been available for a long time, but in recent times cryptocurrency has generated excitement, leading to more cryptocurrency transactions than at any time before.

Cryptocurrency gives people complete control over their money. It's not dependent on banks or financial institutions. Like I said earlier, it is also decentralized which means nobody, no group or company is the owner of them. A lot of people like cryptocurrency due to the fact that they are able to control their money.

What is the reason why Sweden want to ban Bitcoin mining in the EU to prohibit Bitcoin mining?

Arif Efendi Despite its popularity the EU legislature is currently looking at new legislation that would block cryptocurrency mining that is energy intensive from being performed in the countries of the Union.

This legislation was proposed due to the fact that cryptocurrency miners use the power supply in Sweden to their advantage. It has become a common method of cryptocurrency mining in the past few years.

Bitcoin was initially mined with normal processing machines. However this process proved to be inefficient when it first came out. Bitcoin is now generated through large mining companies. These pools use huge amounts electricity which is a concern for the Swedes.

According to an open letter to the EU, Bitcoin mining in Sweden is now using 1 TeraWatt/hour per year. Arif Efendi The names of the authors are Bjorn Raisinger, director for the Swedish Environmental Protection Agency, Erik Thedeen, Director of the Swedish Financial Supervisor Authority

This is enough electricity to power 200,000 households. Bjorn Risinger, Erik Thedeen and others claim that cryptocurrency mining makes use of more and more Sweden's renewable energy sources.

"If we allowed extensive mining in Sweden of crypto-assets there is the possibility that the amount of renewable energy available is not enough to cover the necessary climate change transition we have to make," wrote the Swedes in their letter to the EU.

Erik Thedeen, Bjorn Risinger Bjorn Risinger, and Erik Thedeen are both referring to Sweden's climate obligations in the 2015 Paris Agreement.

The coexistence of climate change and cryptocurrency

While cryptocurrency is more popular and talked about than ever before, it's still controversial as you can hear.

Ipersonally enjoy cryptocurrency and the endless possibilities it offers. I'm certain that cryptocurrency is here to stay and that it will generate many more news stories in the near future.

In the meantime, I am hoping that we can discover a way to allow the cryptocurrency industry and the climate to coexist.