Many media outlets, a host of Internet users and are interested in this currency in grass that is (and will soon no longer) the bitcoin. A few months ago yet, electronic money, created less than five years ago, presented yet as a potential rival to the euro or the dollar. Today, she is at the point of death…
A dream of independence from the major central banks, an ultra-sophisticated computer concept developed by a Japanese engineering, a search for ways to launder money, or of the collective madness of a community of geeks, no one knows to say with certainty what is the origin of the bitcoin. What is certain, however, is that many people will leave “feathers”. As in any monetary system, the wealth flowing is shared between participants according to a set sum to zero. Hold of bitcoins, to buy, so invest real money (euros, dollars or other). This money is initially perceived by those who have designed the program and created the first bitcoins. Then, each transaction is between 2 consenting individuals, as for example a trader online and a consumer, who exchange a good or service against a handful of bitcoins. The system described by the creator (s) was designed to not to allow the creation of new bitcoins beyond a certain amount, for supposedly to avoid the phenomenon of inflation. But, regardless, that it creates or it did not create, the currency has value if it can be used to adjust current or future transactions. From the moment where there is a doubt about this faculty, the currency is also easier trading.
Some anarchists saw a way to clearing systems in place and the direct or indirect control that they exert on people’s lives, including banks and supervisory authorities. This behavior is clearly in the spirit of the internet that has no border and obeys (almost) any law. The first courses of the currency have been set below 1 US dollar in 2010 and quickly soared to more than $ 1,000 in December 2013. The increase in stoking the interest of investors, the phenomenon is packed…
However, the bitcoin system had already suffered setbacks when his credibility had been questioned by its use in drug trafficking. But after the dismantling by the FBI of a vast drug sales platform that used the bitcoin to settle its transactions, some reassurances helped the value of resume its expansion. The motto then came other critics, particularly in relation to the possible illegality of his existence, which had led many Governments to address the issue. However, the redemption value of the bitcoin is distributed upward when U.S. authorities have confirmed its legality. Several large companies, in the image of Virgin have also accepted him as a means of payment on their website and an ATM has even emerged, boosting its potential of future currency of mass.
Last December, the Chinese authorities have put a great shot of brake on the development of the fledgling currency by banning purely and simply use. It was while began the descent to the underworld. The course has lost more than 50% in only 2 weeks, before rebounding strongly between the holidays of end of the year. But burgeoning confidence is broken and the gear runs at full speed. Currently, the course is probably (trading platforms have very different prices) below 100 USD, which corresponds to a loss of more than 90% for those who have acquired the virtual currency less than 3 months ago… Furthermore, the Web site of the Exchange platform bitcoins history seems to have been the victim of a hacking and leaves many people in the lurch. Such disappointment cruelly resembles the bankruptcy that other systems have known in history currencies. As for other systems based on trust, once it has gone in the majority of the people involved, the Assembly collapses on itself.
In conclusion, to become a currency on world markets, must be assured of a very broad recognition system before being launched. Big price differences observed in “normal times” (before the vexations of December 2013), wines which were in the range of 10-15%, are symptomatic of an asset totally illiquid, such as large. Perhaps, a scam will be revealed at the origin of this system incomprehensible and totally unstable, but, one thing is for sure, so I give up to the euro, as a consumer and as an investor, we’ll have a nuclear war…
First of all, I never said “the bitcoin is dead”. I simply describe what seems to be a process of rapid disappearance and that seems to me to lead the bitcoin inexorably toward death. The possible bankruptcy of the platform is not in itself proof of the death of the bitcoin, but a symptom that the system is being destroyed. Of course, death is certain only when the last breath is rendered and some are reborn from their ashes, but it to me is little likely, given the turn that events for the bitcoin.
Then, when a ship is sinking, it is quite normal that the emotions are heightened and that the words of a debate are sometimes marked by animosity, but I do that expose an opinion based on my personal experience and my study in-depth economic over 300 history years. Everyone is free to his opinions, that’s why I let everyone speak on this blog, as far as the tone of the comment posted shows a minimum of respect for my research work.
Finally, my article is “full of inaccuracies”, that is correct and this is quite normal. I do not hold the exact figure on the number of people who are likely to be harmed, traders or consumers, savers and others. I do not know with certainty 1 bitcoin value currently and, it’s true, the evolution of the price represented above reflects the trade on the platform that was likely a victim of the computer bug. However, the courses follow an evolution strongly correlated on other platforms. I see also that all the figures mentioned in the comments below differ significantly.