In less than a year, bitcoin has risen by more than 1,000 per cent and exploded the $10,000 mark. A performance almost unprecedented in the history of the markets. Is it a technological revolution or just a financial bubble?
Bitcoin is the star of the moment. In the markets, we're only talking "almost" about bitcoin now, as virtual currency displays stratospheric performances. In just a few weeks, Bitcoin has grown by more than 500%, from $3,000 in September to more than $15,000 in less than three months.
The number of investors has increased considerably, with more than 30 million users, while investment banks and investment funds have positioned themselves in the niche market. Even economists have grabbed the subject. But where does this crypto come from, how does it work, how far will it climb?
BIG DATES
October 2008: Announcement of the birth of the Bitcoin by "Satoshi Nakamoto" (its official identity is still unknown)
January 2009: first exchange of bitcoins
October 2009: Bitcoin is worth 0.001 dollar
April 2010: A developer buys two pizzas for 10,000 Bitcoins
February 2011: Bitcoin is worth 1 dollar
November 2013: boosted by demand, the bitcoin flies to $1,000
January 2015: victim of piracy, the Bitcoin falls below 200 dollars
January 2017: Bitcoin comes back to $1,000
December 2017: Bitcoin is worth $18,000 for a few seconds. An absolute record
Bitcoin, what is it?
Bitcoin is a computer program launched in 2009 by a group of unknown hackers. The computer program is equivalent to the DNA of cryptography, which defines its technical characteristics and mode of operation.
If the bitcoin is not controlled and guaranteed by a central bank, it is protected by blockchain technology. The "block chain" is a kind of giant numerical account book. It records and secures all operations carried out with bitcoins.
There are essentially two types of investors. Individuals and institutions. The number of private users is estimated at 30 million, nearly half of whom are in the United States. For most of them, it is above all a speculative investment, and they try to take advantage of the bullish wave.
On the other hand, there are institutional investors, in particular investment funds, which are more discreet but have a strong presence. These players want to position themselves on a new financial asset. The Chicago Stock Exchange is expected to launch a futures contract on bitcoin in December, while the French fund Tobam has already decided to offer its clients the option of investing in the cryptocurrency.
How far can Bitcoin climb?
That is the issue that is shaking the markets. In December, the bitcoin experienced sessions with increases of more than 30%. Since the beginning of the year, the price of bitcoin has multiplied by more than 15 times, from $900 to over $15,000, with a peak of $18,000.
Few financial assets recorded such increases. Only a few stocks on the stock market and "penny stocks", whose shares are worth only a few cents, show comparable increases.
Potentially, bitcoin has no limits as long as demand increases. It could continue to climb in the coming weeks, especially if futures contracts launched by the Chicago Stock Exchange give credibility to its financial normalization.