Bitcoin emerged after the 2008 crisis, a period that demonstrated the power of governments and central banks over cash withdrawals and outstanding capital. There are few ways to escape these constraints. Bitcoin is one of them.
There are currently more than 2000 crypto-currencies in the world, the best known being Bitcoin.
Bitcoin already has a capitalization of billions of dollars.
The cryptocurrency is a virtual currency whose supply is reduced and which does not require the intervention of the banks to carry out transactions.
In the space of less than 12 months, the term « cryptocurrency » has (already) known to find a place in certain financial circles. A cryptocurrency such as bitcoin has value only if it is considered a currency by all participants in the monetary system. It therefore needs to be rare, in the sense that it can not be easily copied (a problem equivalent to that of counterfeit notes, for traditional currencies).
These are characterized by a lack of physical support: neither coins nor notes and payments by check or credit card are compatible with them. « It should be known that traditional currencies are more and more dematerialized. The coins and coins represent only 15% of the currency in circulation. » Moreover, contrary to a conventional currency whose value can fall due to the unlimited production called billboard this is impossible with crypto currency because its production is limited.
These are alternative currencies that are not indexed to gold prices or conventional currencies and are not regulated by a government or more generally by central agency.
Paradoxically, their breakthrough technology ensures unparalleled security, privacy and transparency so far are their greatest assets! Indeed, cryptography secures transactions that are all verified and registered in a public domain, ensuring both confidentiality and authenticity, thanks to blockchain technology.
WHAT IS CRYPTOCURRENCY USED FOR?
Like any traditional currency such as the euro or the dollar, crypto-currencies allow the purchase of goods and services to be decentralized currencies and thus escape any regulation.
Not being under the control of a central authority and escaping any regulation, they have long been the prerogative of illegal transactions (ransomware, drug trafficking, etc.) but they tend to get rid of their bad reputation by democratizing and attracting a wider audience. Crypto currencies are today more and more used for legal transactions.
Crypto currencies are above all a potentially profitable investment. Digital alternative currencies can indeed be a new kind of investment, while participating in the new digital economy.
Crypto currencies make it possible to buy many consumer goods. It is for example possible to buy with bitcoins of computer equipment of course but also foodstuffs, jewels, decorative objects, cultural products, commercial sites. generalist accepts the payment in bitcoin. They tend, however, to get rid of their bad reputation by democratizing and attracting an audience wider and wider. To purchase cryptocurrency, most brokers and trading platforms use the KYC (Know Your Customer) procedure and request credentials. This is also one of the steps we impose on any client in order to be in good standing with the financial authorities (REGAFI, FSMA …).
