It has been about ten years since Bitcoin was launched by its creator, Satoshi Nakamoto.
But it’s been only a short time since it’s attracting so much interest.
It is essentially in 2017 that all eyes are on the virtual currency when its price is close to 20,000 USD.
Thus, those who had bet on this futuristic currency have enriched themselves as suddenly as spectacularly.
But many have predicted his disappearance and are shouting at the speculative bubble.
The Bitcoin bubble will burst eventually
Virtual currencies being a totally new system operating in the world of finance, no one really knows what their future will be.
Extremely volatile, they reach peaks then fall suddenly. This phenomenon pushes many economists to think that Bitcoin would ultimately be a speculative bubble.
For example, Nouriel Roubini, president of Roubini Macro Associates, who recently said:
“I foresee an important probability that his price is going to zero. “
It is true that last Friday the price of Bitcoin had fallen below 6000 USD, making many predict its total collapse.
In fact, Nobel laureate economist Robert Shiller told Bloomberg: “Bitcoin is a speculative bubble.”
Steve Strongin, Head of Investment Research also said:
“It seems unlikely to me that any of the current cryptocurrencies will survive in the long run, though some of them may evolve and survive. Due to the lack of intrinsic value, currencies that do not survive will likely be traded at zero. “
Yet all these pessimistic forecasts seem outdated today. And the comparison often made with the “bubble of tulips” of the seventeenth century, does not really hold.
For it must be said that most of these pessimistic analysts make a difference between Bitcoin and the blockchain technology that underlies it.
However, the world of Blockchains and Cryptocurrencies is constantly evolving and fast and more and more people are using these new technologies.
The world of Blockchain
Indeed, the technological progress represented by Blockchain and its massive adoption, proves that this is a phenomenon that goes beyond the single financial and monetary system.
High-level sectors such as banks, large corporations and even governments are increasingly interested in this revolution.
For example, regarding banks, Farzam Eshani, co-founder and CEO of VARL recently said:
“All the banks realize that they have to get on this blockchain boat, I do not think many banks necessarily understand where the boat is going, but they realize that it’s a development that takes off and that, if they want to be of the trip, they must be on the boat. “
At the level of large companies, we can mention Amazon, IBM or Microsoft, who actively seek for their customers Blockchain solutions, often related to cryptocurrencies.
At the same time, governments are starting to take an interest in virtual currencies.
This is the case here of the Dutch government, which has created a blockchain research and development unit.
Can we differentiate Bitcoin from the Blockchain?
So, can we separate the two phenomena that are Bitcoin and Blockchain?
Most experts believe that Bitcoin and Blockchain technology are closely related and can not be separated.
For them, if there is a massive adoption of the new technology, there is bound to be a correlation of profit for the cryptocurrency.
With so many large institutions getting more and more involved in the Blockchain world, it’s hard to believe that they will be able to do without virtual currencies in the future.
Lightning Labs’ CEO, Elisabeth Stark, explained this alleged distinction between the cryptocurrency world and the Blockchains:
“When we started our Lightning Labs company, we actually removed the word” Bitcoin “from our platform and our marketing materials because it was blockchain. Now I have the impression that we have entered a world “Bitcoin, not Blockchain”, where people understand the value of cryptocurrency technology and what it can bring. You also have a “proof of work” in Bitcoin, you have public / private key cryptography. There are other things that make Bitcoin special. In a way, the blockchain part separated and became a thing. “
Emin Gun Sirer, an associate professor at Cornell University, explained:
“We have seen that these technologies are quite robust. The chains do not disappear, they resist and stay stuck. Many of us have spent years proselytizing for these technologies in general and Bitcoin in particular. As a result, there has been tremendous goodwill and recognition of the brand built around it. There will always be a community around the brand that will advance this chain. “
The adoption of cryptocurrency and its technology has reached a critical level with increasing popularity. And it is unlikely that she will suddenly lose total support.
Gun added: “I suspect there will always be a Bitcoin brand and a niche community around it.”
Moreover, Bitcoin is able to evolve and adapt thanks to its peculiarities: money is not governed by a man or any group. It is decentralized and autonomous. It is governed by a majority vote and it is the community that chooses the path that will lead to its survival.
Kenetic Capital co-founder Jehan Chu, who is working to spread Blockchain technology, said:
“Bitcoin will never come to zero because it’s a hedge against falling currencies, inefficient economies and more and more systemic inequality. Bitcoin represents the currency of a better future for society, and people will always invest in their future. “
Bitcoin can it disappear?
For all these reasons, it is hard to believe that Bitcoin can simply disappear from the financial landscape.
All crypto currencies and their technologies spread slowly but surely in society.
Regulators first tried to fight them, but came to understand that working with them is more effective than against them.
In addition, the traditional sectors of the financial markets have also turned to them.
This is why, in conclusion, this autonomous and democratic decentralized system of money seems very difficult to completely eliminate.
At the time of writing, Bitcoin was trading at $ 6300.