It is not possible to predict whether cryptomonths will survive and whether they will settle in the way we conceive them today. Only the community can decide on the future of digital coins
Bitcoin (BTC) is a digital currency (also called cryptomoney) which is used only on the Internet and which is intended to be totally decentralized, since it is not controlled by any bank or central issuer, to exchange goods and services. This transmission stands out, among others, for being immediate, for offering high security thanks to the cryptography it uses, for being able to be used worldwide and without intermediaries, for being irreversible transactions and for preserving privacy.
The blockchain is the base on which the bitcoin protocol is based. The BTC's mining and quoting is done on that technology, and in it, bitcoins buyers and sellers can perform the operations in a secure and encrypted manner while registering, storing and authenticating in a large distributed database.
When the BTC appears in 2009, its value is nil. This is a guy who has invested his time, knowledge and money in developing a new technology with a clear ideal: to have an alternative to Fiat money and what it represents. At the outset, and given that few people know about it, there is no demand or necessary mining. But with the first operation where 10,000 bitcoins were paid for some pizzas, the demand and interest for this new means of digital payment begins. The growth of the BTC economy and demand is what is beginning to boost the quotation and interest in the cryptomoney, going from the few cents of dollar in 2009 to more than 3,000 dollars to those that are quoted today.
Confidence and meeting expectations are the real keys to the success or failure of the digital currency. Not what one or the other character says.In this process of rebellion, because we talk about exchanging value in a non-centralized way and outside the compulsory compliance system that is imposed on us, the explosion of the price, news and various disqualifications of bitcoin occurs. Many, for not understanding anything behind the tip of the iceberg that the BTC represents, and others, for being threatened by the power of the community that is what, in short, will validate or not the future of bitcoin. This is important, because trust and meeting expectations are the real key to the success or failure of the digital currency. Not what one or the other character says, and not even what one or the other State does.
Thus, if we look at the growth of the community, measured by the total number of digital portfolios created, we see that this is very significant and is reaching interesting magnitudes. These figures show how, on that side, the impact on demand for bitcoins is clear and reflected in the price.
At this level of prices, the strong revaluation experienced in the last year and the correction of the last week do not cease to generate different types of headlines. From those who think that the target is USD 10,000 per BTC to those who say that all this is a real fraud and that the cryptomonniques are worth nothing.
In the heat of the correction of more than $1,000 this past week, many of the critics and neophytes in the field have taken advantage of it to charge against the digital currency. For example, JP Morgan CEO Jamie Dimon commented that bitcoin was nothing more than a fatal endgame fraud and that it was impossible to create air money.
In fact, any form of payment is valid if accepted by the whole community. So it has been since the beginning of time, and in that sense, bitcoin is just another variation of consensus. Likewise, the mining of the bitcoin chain blocks means today a cost of close to $1,000 dollars in electricity consumption and what comes from' air' is no longer so true.
On the other hand, no one better than Mr Dimon to understand what it is to make money out of nothing. In the financial crisis, without going any further, money had to be created to get his entity, and many others, out of the hole in which it had found itself. JP Morgan has been fined more than $28 billion for various bank violations and abuses over the past seven years, making it less likely to talk about fraud.
As if that weren't enough, JP Morgan has been trying to patent an alternative payment system to bitcoin for a few years now. I imagine the 175 attempts they have made are made by considering this form of payment a fraud to use.
In any case, the fall suffered this past week by all the kryptomoney coins does not come, far from it, from these comments contrary to bitcoin. The true origin comes from China and its intention to ban ICOs first and the negotiation of cryptomonniques on Exchange (not OTCs) later. As this market represents 25% of the operations, the transitory impact on confidence is clear and has led to sales that have caused sharp falls in prices.
While the $3,000 seems to be the first of the media to be monitored, and being aware that the correction may be even greater, I have no doubt that neither these comments nor these prohibitions will end the digital currency. The volatility we are seeing is neither healthy nor desirable, but that in the end cryptomonths survive and settle in the way we conceive them today is impossible to predict. It is only the community that can decide on the future of digital currencies and it is the community that can demand a new financial system, where transparency is total and where everything is auditable.
That is what the new technology offers and it is in our hands whether the expectations are fulfilled or not.