AlEqtisadiah from Riyadh
The digital currency "Bitcoin" records the biggest monthly decline for more than seven years, where investors are re-evaluating the prospects for digital funds and their prospects after the surge last year.
According to Bloomberg News, the largest digitized digital currency "Bitcoin" fell by 7.6%, which is bringing its monthly losses to about 37 per cent, the biggest decline since August 2011 when Bitcoin fell 39 per cent to $ 8.20.
The sharp losses in digital currencies were driven by declines, which lost 7.03 percent of their value yesterday.
The value of "Bitcoin" during trading yesterday was $ 4.054 compared to about $ 6370.8 in early November, a difference of 2316 dollars.
The price of "Bitcoin" has risen to a record high of $ 19511 in December.
Bloomberg quoted Michael Novogratz, the founder of Galaxy Digital Holdings Ltd. that is specialized in digital asset trading and encrypted digital database technologies, during a telephone conference in which he summarized the results of his company in the third quarter of this year by saying, "It is a terrible market where the prices of encrypted currencies collapse."
In addition, other leading digital currencies continued to decline.
The currency "Ethereum" fell by about 2 per cent to $ 112, with a monthly loss of 43 per cent.
The digital currency "XRB" fell by 4.5 per cent to 36 cents, bringing its monthly loss to 21 per cent.
Novogratz said, "Part of the low-price sale is due to the rigidity of the US Securities and Exchange Commission with a few counterfeit companies in the initial offering of new digital currencies. This made traders very concerned."
The market value of digital currencies fell to about $ 130.9 billion, during yesterday's trading.
The thinking of establishing the Bitcoin currency in 2007 was started by a Japanese programmer who called himself Dorian Satoshi Nakamoto.
In 2008, he published a research paper in which he introduced the idea of using electronic money as an electronic monetary system that relies on direct financial transactions between one user and another without a mediator in an attempt to find a free and uncensored currency.
The idea of this currency is based on open-source software through which the code can be reviewed at any time and by anyone.
The system is based on two principles: the first is the electronic signatures to control ownership.
The second is by prohibiting the use of the same currency in more than one purchase to protect the seller through the so-called peer-to-peer technology in order to keep full records that called "block chain," which summarizes the history of the currency and transactions that passed through databases that cannot be changed in each computer on the Internet.
