Dubai Now Has Its Own Cryptocurrency

For several years, Bitcoin seemed to be the only cryptocurrency capable of gaining traction in the real world. The average person in the street still isn't au fait with the intricacies of cryptocurrency and blockchain, but they at least understand the basic concept of them. They know that Bitcoin has made many people rich, and they also understand that they can buy, sell, and trade it through their PayPal wallets if they wish to do so. Most of them still don't, but the acceptance of crypto by currencies of PayPal's size is a step in the right direction if cryptocurrency is ever to go mainstream.

In the fast two or three years, more cryptocurrencies have broken into the public's consciousness. Ethereum, the second-largest such currency in the world, is beginning to gain awareness. Dogecoin isn't especially valuable, but millions of people all over the world have heard of it because of Elon Musk's interest in the digital coin. Facebook has flirted with the idea of launching a cryptocurrency several times but has stalled after running into trouble with legislators in the United States of America. It seems that everybody and anybody can launch a cryptocurrency if they want to, so Dubai has. If you want to, you can now invest your money into DubaiCoin.

DubaiCoin is the creation of a company called Arabchain Technology, which presents itself as the first blockchain company to come from the Arabic world. That claim is disputed, but what's not disputed is the fact that it's the first Arab country to bring a cryptocurrency to the global marketplace. Various high-profile businesses in Dubai have either been consulted or directly involved in the development of the coin and will accept it as payment for goods and services. That gives it an instant localised material advantage over several other types of cryptocurrency that have higher profiles but aren't accepted as a payment method in Dubai. The city's authorities have full control of the currency and will only permit its sale through authorised DubaiCoin brokers. On the back of this information, the coin's value has increased by more than one thousand per cent in its first few days of trading as investors jump aboard.

You can already buy DubaiCoin as DBIX on a carefully chosen selection of exchanges worldwide, but that's not the only way you can get your virtual hands on some. If you'd prefer to do things the hard way, you can use your computers to mine the coin. That's because it's on a public blockchain. After debuting with a cost of $0.17, the value of each coin has risen to $1.13 as of the time of writing. Even in the brief delay between the writing and uploading of this article, we expect that it's increased in value considerably. It's already more valuable than Dogecoin and might be worth several times Dogecoin's value by the middle of June. According to Arabianchain Technology, the end goal is for the currency to become a genuine alternative to bank-backed currencies.

While the coin’s initial performance has been good, it’s been launched during a volatile time for cryptocurrencies as a whole. Only a few days ago, the cryptocurrency market as a whole took its worst collective plunge in four years after reaching record highs only a week beforehand. Bitcoin took the worst hit, dropping down to thirty thousand dollars per coin after rising higher than sixty thousand in the middle of April. The market is obviously volatile, and currencies based on public blockchains are seen as more volatile than those that aren't. Bitcoin has already started to recover and will probably return to its April high before the end of the year. Still, the unexpected drop was a reminder that colossal losses are possible at any time when you're investing in the digital realm.

The problem that comes with investing in crypto in 2021 is the same problem that’s applied to investing in crypto since the dawn of the concept - there are too many unknowns. Despairing senior investors have often compared it to trying to use casinos as an investment tool. If you’re one of the very luckiest players at casino sister sites, you might win as often as you lose, but you'll still lose often, and you'll never really understand why those wins and losses happen. It's an ironic comparison to make, seeing as an increasing number of casino websites now accept cryptocurrencies as a form of payment, but it's also a valid one. Their point is that even if you spent ten dollars playing slots and won ten thousand dollars on your first spin, there's no way of being sure that you'll come out in profit if you then invested those ten thousand dollars into another thousand spins. Spikes and drops seem to come from nowhere, and investors are always caught off guard when they do.

For the reasons we’ve just explained at length, it probably wouldn’t be the best idea to invest all of your savings or excess funds into the new DubaiCoin. That’s not to say that we don’t see the value in DubaiCoin, because we do. It’s just that we’d never recommend anyone having an entire portfolio of cryptocurrency investments with no diversification. There are still many real-world investments worthy of your time and money, and they ought to be included as part of a balanced portfolio. If you want to support local businesses and also get involved in DubaiCoin at an early stage, though, now is your chance. Gains are likely to continue for a while, and it’s a fun way to pay for your passage around Dubai. Again, this article is not investment advice and shouldn’t be construed as such. We present the detail in this article purely as information.

In developing and launching its own cryptocurrency, Dubai has beaten both China and the United States of America to the punch. Both countries are in the process of developing their own state-approved cryptocurrencies but are a long way from being ready to launch them. The famous "city of gold" has proven itself to be a world leader yet again, and other territories will now look to follow its example.

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