Bitcoin: speculative hysteria or technological revolution?


The crazy rise of Bitcoin continues. The price of the virtual currency, whose name arouses a fever in the media and on the stock markets, continues to rise, surpassing the symbolic threshold of $8,000 on November 21 while it was still worth $3,000 last June.

If we recall that the e-money was trading for $1 in 2010, the increase is impressive, but we must also remember that the price of Bitcoin also fell sharply in 2011 and 2013 and has experienced very rapid fluctuations since then.

However, the mad race for growth that has been going on since the beginning of the year 2017 and the symbolic passage of the $8,000 suggests to all those who profess an unshakeable faith in the new digital god that it will make them millionaires. On the contrary, other observers predict the imminent bursting of this new speculative bubble or insist on the fact that changes in the price of Bitcoin are decided by a small number of players, some 70 investment funds that make and break the prices as they wish. You can even buy Bitcoin with Paypal like explained here

This new technology opens up vivid and fascinating perspectives and a speculative fury that bodes well for a crash.

The current situation is not so far removed from the hysteria triggered in the 1990s by the beginnings of the Internet. In both cases, a new technology that few still understand, vagueness and fascination, and speculative fury that bodes well for a crash.

The bursting of the first “Internet bubble” in March 2000 left many investors on the back burner, fewer who had managed to preserve the considerable fortunes built on sand in such a short time.

fsojgnsgnepanirueourtuuttuytyyyuProfits from 1995 to 2000 totaled $145 billion, and losses in 2000-2001 totaled $148 billion.

Without throwing into the extreme gloom of the last-minute modernists who swear by the “tablet revolution” at school or want to connect everything, from the teacher to the entrepreneur to the fridge, it remains true that in two decades, a few significant innovations have forever changed our lives and our societies.

The same type of technological leap is taking place behind the highly mediatic Bitcoin, a virtual tree that hides the forest from the real applications of the block chine principle to the economy and everyday life. What hides behind these still little-known concepts of digital currencies whose stock market adventures excite investors’ imagination? The answer is simple: an algorithm. The explanation is much less so.

The Bitcoin is an encrypted currency that allows for online peer-to-peer transactions without the intervention of a third party as an audit authority.