bitcoinvancouver

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Bitcoins : Another Symptom of Loss of Faith in Fiat Money by Philippe Herlin

Bitcoins : Another Symptom of Loss of Faith in Fiat Money by Philippe Herlin

Bitcoins : it’s new, it’s in, so to speak, and we keep hearing a lot about this virtual money that was created in 2009 and that is breaking record after record. What should we think about it?

Let’s briefly recall its modus operandi : this virtual money circulates on a peer-to-peer network, e.g. without a central server or any « hierarchic authority », without a central bank. To avoid any counterfeiting, each bitcoin is traced since its creation by the electronic signature of each of its successive owners. And this verification work is accomplished by the « miners », who are paid… in bitcoins and also by the (very low) transaction fee. Thus, the system is perfectly autonomous and self-regulated.

The use of bitcoins had been limited to a few alternative computer communities until 2013, when it sarted to gather some steam. The bankruptcy of Cyprus in the spring and the looting of bank accounts opened many people’s eyes about the absolute protection supposedly offered by the banks for one’s savings, whereas no one has any authority to loot a bitcoin account. At the same time, Argentina is implementing currency controls to avoid capital flight, and we discover that bitcoin transfers are not affected at all by borders. On top of that, many articles in the anglophone papers have drawn attention to bitcoins, which value was under ten euros in 2012, and then went up to 100 euros this summer (after a bubble to 200 euros followed by a crash in April). We’re witnessing a new fever since the end of October (almost 300 euros November 13!), after Baidu (the first search engine in China) decided to accept bitcoins as payment and eBay (owner of PayPal) showed some interest… bitcoins are being institutionalised, so to speak.

 
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This entry was posted on November 17, 2013 by and tagged .

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bitcoinvancouver2013@gmail.com

bitcoinvancouver2013@gmail.com

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