Egyptians Warn Against Trading in Bitcoin

After the record high witnessed by the digital encrypted currency "Bitcoin" last Monday, surpassing the $122,000 mark, Egyptian experts warned against trading it in Egypt.


Wael El Nahas, the economic expert, according to "Masrawy" website, stated that "Dealing with Bitcoin is considered illegal in Egypt, as it has not been regulated or officially recognized so far". He added that "Any investor may fall victim to fraud or losses in Bitcoin-related transactions and will not be able to claim their rights due to the lack of a legal framework regulating these transactions".

El Nahas attributed the recent significant increase in the value of Bitcoin to "the global media hype surrounding it, especially with the readiness of the United States to discuss a law that may legalize official dealings with it, in addition to the desire of the U.S. President Donald Trump to include it in the state's reserves".

The economic expert pointed out that "Bitcoin has risen from just 6 cents in its early days to over $118,000 currently, but this huge increase is not due to its ownership of real assets, but rather the result of large speculations on it". He warned saying: "If Trump steps down from power, the currency price may suddenly collapse".

On the other hand, Ihab El Desouki, the economic expert, stated that "despite the significant gains made by some investors in Bitcoin, it remains a dangerous virtual currency", explaining that "its main risks lie in the absence of any central bank or official entity backing it, making it prone to sharp and sudden fluctuations".

El Desouki added: "Investing in Bitcoin is akin to gambling, where you can lose all your money overnight without any legal protection". He advised investors to turn to more stable sectors such as the real estate sector, which he described as "achieving good long-term gains", or the industrial sector which is characterized by "its sustainability although its profits are relatively lower".