Cryptocurrencies

Cryptocurrencies are traded as commodities and partly used as a medium of exchange. They are still actively traded despite the ‘2018 cryptocurrency crash’ (a.k.a. the Great Crypto Crash), which shook the market in the first quarter of last year. Almost all the cryptocurrencies suddenly collapsed following an unprecedented boom in 2017. Cryptocurrencies are currently in an extended bear market, fluctuating at low price levels. The overall market capitalization of all cryptocurrencies reached $650 billion in January 2018, according to ‘How much illegal activity is financed through cryptocurrencies?’, a study by researchers from the University of Sydney, the Stockholm School of Economics in Riga, and the University of Technology Sydney. There are local speculators involved in this high-risk business, one that has the potential to generate high returns.

IN OUR BACKYARD

Using cryptocurrencies as a medium of exchange similar to conventional money is prohibited in Lebanon but local investors and companies, with the exception of banks, can trade and invest in these digital currencies. Very few local companies are engaged in cryptocurrency trading although the country has a large number of skilled digital developers, according to , Chief Technology Officer (CTO) of Raqmeya a company which trades in cryptocurrencies. “It is much easier for local investors to deal with cryptocurrency companies based in Lebanon because foreign companies require more stringent conditions,” he said. The cryptocurrencies most in demand on the local market are mainly Bitcoin and, to a