Digital currencies: between decentralization and central

العملات الرقمية: بين اللامركزي والمركزي

In late 2017 the price of bitcoin numbers fairy. This is the digital currency that no one’s attention in the first years of its appearance became the attention of a lot of people, companies, and even governments, many of the people he was preaching that the future is Bitcoin, other digital currencies that have become the show every day.

Think a lot of the digital currencies on the principle of decentralized network, verification simply means that the database that contains financial operations, and the amounts, distributed to all persons who have this network, and you can’t do any change without having to be part of this network otherwise you will lose the process.

This idea means that the manipulation of the database difficult in theory, because all devices connected to the network you must agree to the process of conversion or transfer bitcoin from here to there, the owner will not own more than 50% of devices that connect to the network decentralization, the manipulation of the future (theoretically, of course, technically, there’s nothing impossible).

But the idea of currency decentralization may prove its failure in the face of fluctuations in regional show need to have a central point to the level of each state, rather than invest our money in the network were decentralized.

Imagine to be your money in the bank, but you can’t scream them a penny. This was the case the owners of bitcoin in Hong Kong. Why listen to users any operations because the government cut off the internet because of the demonstrations that erupted recently, and that means his inability to join the global network of bitcoin, which is necessary for it to work.

What happened in Hong Kong is not a single event, the Civil a bitcoin in both Lebanon and Iran are facing the same problem constantly, go on a diet constantly to different ways to link to the internet and blocking, all of these things require that the user be a strong technical background to interact with these services, which is something you won’t find in most people.

The above scenario is justification enough for me to give up the idea of currency decentralization, the risk is high, and that political volatility play a role, so I’m with the idea of local currency for each country, so that a centrally managed even in the case of global crises, so there are still many governments are aware of the verification process for the digital caution, and regarded the Marshall Islands is the first country to issue the official currency in digital form.

Recently, usually talking about the process of “passing” between Saudi Arabia and the United Arab Emirates, which is the digital currency will be supported by the Saudi Arabian Monetary Agency, and the United Arab Emirates central bank, in the UAE, has already announced late last year, and it seems to work on them is still limited banks to certain things, but not details about it yet.

The presence of government agencies and centralized means that there is a reference for any particular problem, such as technical or financial, as it implies the existence of a deterrent to any attempts to manipulate the value of the currency as happened with bitcoin in the past. It also ensures that on the one hand owner only, namely, the state in the case of “transient”, rather than risks to be able to hand a certain improvement in the proportion of more than 50% of the hardware component for decentralization, which is believed that China is trying to do.

Am I optimistic? In general, we can’t stop evolution no matter how we tried, but on a personal level, I get the concerns of science fiction movies which depict a global catastrophe stop all electronic devices, and the time it will not benefit me my balance in the currency bitcoin or any currency other.

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