In this phone interview on Rai Wa Rai broadcast on Al Rai TV with host Abdulwahab Al-Essa, economist and researcher Abdullah Al-Salloum discusses the growing phenomenon of cryptocurrency trading and investment, offering a broader economic and monetary perspective that goes beyond the usual debate of profits and losses.

Al-Salloum begins by distinguishing between “digital currencies” and “virtual currencies,” before explaining the historical foundations of the modern monetary system. He revisits the major shift that occurred in 1971, when the United States — under President Richard Nixon — ended the dollar’s convertibility into gold, effectively moving the world away from the gold standard toward fiat currencies not backed by tangible assets. He explains how this transition gave central banks the ability to expand money supply in line with economic growth and production.

According to Al-Salloum, the emergence of Bitcoin and other cryptocurrencies can be understood as a reaction to this monetary transformation. He argues that cryptocurrencies attempt to restore the concept of scarcity to the financial system by creating currencies with limited supply that cannot be endlessly printed. However, he also explains that this concept fundamentally conflicts with the structure of the modern financial system, which depends on increasing money supply to stimulate investment, maintain economic activity, and stabilize prices as production expands.

The discussion further examines one of the core challenges facing cryptocurrencies: the difficulty of gaining official legitimacy as recognized mediums of exchange. Al-Salloum argues that central banks around the world are unlikely to surrender their control over monetary flows and financial policy, making the long-term institutional adoption of cryptocurrencies highly uncertain. For this reason, he believes that the fundamental analysis of cryptocurrencies reflects an extremely high level of risk, since their valuation still lacks clear sovereign and monetary backing.

On the investment side, Al-Salloum explains that the decision to invest in cryptocurrencies cannot be generalized for everyone. Instead, it depends on the investor’s ability to conduct both fundamental analysis — which evaluates the true value and risk profile of an asset — and technical analysis, which studies market movements and future price trends. He stresses that entering cryptocurrency markets without understanding technical analysis or fully recognizing the associated risks can be extremely dangerous.

Overall, the interview presents a deeper economic and philosophical examination of cryptocurrencies, their relationship with the global monetary system, and their potential impact on the future of money and monetary sovereignty — moving beyond the simplistic narrative of speculation and quick profits.