Cryptocurrency: Technology of the future or speculative bubble ? :


With a historic peak in the capitalization of crypto-assets on January 7, 2018 (exceeding $ 800 billion), cryptocurrencies have poured ink, and two major camps clash, those who see a practical way, fast and universal to transfer money, and those who see it as a speculative bubble that has already exploded.

Could we dare to talk about cryptocurrency without talking about Bitcoin? "The" cryptocurrency unbeatable: it was created in 2009 by a person, (or a group?) Using the pseudonym of Satoshi Nakamoto, we will treat the subject later because it is at the center of the wildest fantasies of Internet users; and since its creation in 2009, Bitcoin has always been the biggest cryptocurrency in terms of market capitalization and price. If Bitcoin has always dominated this market, there are many contenders to the throne, grouped under the category "altcoins" or "alternative corners".

The technology that cryptocurrencies use is called "blockchain", the transfer, the verification that a unit is spent only once, and (if its blockchain allows it) the creation of new units of that currency is guaranteed by cryptographic problem solving, hence the cryptocurrency name.

The operation of the blockchain is another subject to be explored in a future article because this technology has a very broad field of application, which would allow us to understand the technical aspect of these famous cryptocurrencies. Simply, the blockchain provides near infallible security for quick and easy access to a common (decentralized) database. And that is why the first blockchain was born with the first cryptocurrency (Bitcoin), its operating principle makes it a very good ground for valuable asset exchanges.

Cryptocurrencies can therefore be exchanged safely from anywhere in the world connected to the internet without the need for any regulatory institution. One could imagine in a future world, being able to spend our cryptocurrencies on a trip, without having to worry about exchange rates with the national currency of the country we visit. It would also be hypothetically a resolution to the problem of inflation of national currencies, a way for households to keep their assets safe from inflation since there are no institutions that would run the "billboard For cryptocurrencies.

But if until then these crypto-currencies were selling dreams, the speculative wave in which they have plunged for a few years cast a shadow over the initial ambitions.

Indeed, cryptocurrencies have seen an exponential growth in recent years, from $ 7 billion in capitalization in January 2016 to $ 600 billion in capitalization in December 2017, so it is not possible to say that this is only the enthusiasm of the public for a global monetary system independent of the banks, which has raised the bar so high and it can be said that a speculative dimension exists. When there is speculation, there is a risk of bubble formation, and the price of Bitcoin has indeed become a bubble, or even "the biggest speculative bubble in history."

Today we can see what happened after this historic peak that Bitcoin had reached on December 17, 2017 (about $ 19900) and it is clear message, if a speculative dimension that will unfortunately benefit the whales whales "Exists in cryptocurrency, with an unstable course, often manipulated, causing purchases and emotional sales among novices trading, it is not for all that the initial project defying the monetary and banking system for the benefit of users is to throw to oblivion.

Time will tell if these cryptocurrencies will allow us to emancipate ourselves from our national banks and currencies, if they will disappear for lack of interest or if they will further strengthen the stranglehold of the barons of finance on global capital.
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