The crypto-currencies have fluctuated spectacular. After the repression of China regarding Bitcoin, the price of these virtual currencies have been hit hard in recent weeks. Asset bubbles have different shapes. The price of one bitcoin was close to $ 5,000 last month, after a rise of 350 % this year. Unfortunately, it has fallen to 3 000 dollars.
The Bitcoin is supposed to reduce the costs associated with online transactions by eliminating the financial intermediaries, that is to say, the banks. Moreover, its value is speculative.
The crypto-currencies have changed the banking systems of the traditional
In modern capitalism, money is no longer backed by gold, flowing in the form of coins, credit or debit notes. Governments and central banks print money and act as guarantors. Most trust funds are held in the form of deposits or loans by the banks.
For example, the coins and banknotes of the United Kingdom represent only 2.1% of the total money supply. The Internet has facilitated the conduct of financial transactions at a low cost, anonymous, and verifiable online. The business of crypto-currencies will do everything possible to strengthen the security of different operations. But, these systems are not always foolproof.
Reduce the place of the banks in financial transactions
The crypto-currencies are intended to eliminate the financial intermediaries through the P2P payment system. They do not have any geographical constraint, because the transactions are decentralized and exchanges are not subject to any regulation or monetary policy. The main innovation is the Blockchain.
Thanks to this technology, it is possible to register the transaction without the control of the authorities. The members of the network check the different transactions and are offset by a new crypto-currency. The validation by the blocks is supposed to prevent fraud.