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The twists and turns of Bitcoin

The twists and turns of Bitcoin

The twists and turns of Bitcoin

bitcoin (Antana credits, Creative Commons license)

In recent days, there has been a lot of news about Bitcoin. It must be said that the digital currency, relatively wise since the beginning of the year, is starting to show some signs of feverishness with a marked increase in volatility in recent days. At the same time, the political world seems to be looking again at its existence …

And since the end of May, there is a sharp rise in the price of Bitcoin. Since the beginning of the year, digital currency has been slowly oscillating around € 400 per Bitcoin, with a tendency, quite calm, to a moderate rise. Since May 25, however, the price of a bitcoin in euros and dollars has suddenly increased, quickly showing € 450 and € 500 per bitcoin, to reach more than € 600 at the time when these lines are written.

Of course, we can very well put this sudden rise in the price of Bitcoin on the account of the youth of this currency, on a new surge of fever more or less irrational. It can also be noted that two phenomena maintain this increase.

The first is probably the rush of the Chinese on the digital currency : everything indicates indeed (starting with the volumes processed by OKCoin Exchange, a Chinese trading platform Bitcoin) that some of them felt the time has come buy bitcoins to escape the capital controls that the Chinese authorities are putting in place in the People’s Republic. And even if it is a small proportion of Chinese who are interested in this market, and even if it is a small proportion of their cash, the total amount of Chinese and the total amount of available liquidity (we speak in trillions of dollars), added to the relative narrowness of the Bitcoin market inevitably lead to significant effects on prices … which leap.

Moreover, this explanation also helps to explain, at least in part, that the price of Ethereum has also recently undergone a significant increase. Digital currency meeting different criteria of Bitcoin, and resolutely oriented towards the concept of “smart contract” , this currency in full development attracts a marked interest that allows it to place itself currently in the wake of Bitcoin. In addition, its more modest course (currently around $ 18 per Ether) provides easier entry for beginning investors.

In addition to this, the anticipation of the next significant operation on Bitcoin production is largely due to the fact that in a little over twenty days the reward for block mining will be halved (” halving “). Recall that digital currency is based on blockchain technology whose securing is ensured by mining, that is to say the verification of a block of transactions and its addition to the rest of the blockchain. Verification that, when completed, allows those who realize it to reach a fixed number of bitcoins: 50 since the creation of Bitcoin, then 25 from November 28, 2012, and normally 12.5 10th December 2017

Mechanically enough, the newly produced bitcoins will therefore be less numerous. With production becoming lower, the price should increase significantly (which was observed during the previous “halving”, bitcoin gaining close to 10% around this date), and even more so if demand, it continues to be firm as we are currently observing.

 

At the same time, the world of politics is starting to get excited about these issues of digital currency. Perhaps it is these upward movements and volatility that have pushed some politicians to issue rhetoric about digital currency? Anyway, question impromptu gurgles, we were served on the side of the National Front who could not help but explain wanting a law to ban this abomination in France .

Can we be surprised? By its very nature, Bitcoin allows individuals to be freed from any state supervision by separating their financial activities from the particularly voracious (and pudgy) fingers of the state.omnibellied. A party that has placed the role of the state so high as to make it the alpha and the omega of any solution to the problems of the French can hardly let develop such a technology, especially if, ultimately, it clearly question the way the tax can be collected(always citizen, always festive, always legitimate and always agreed, of course).

In a diametrically opposite way, let us note the incredible proposal of ten deputies LR led by Laure de la Raudière who wish to give probative value to the recordings of transactions authenticated by a blockchain technology. Two amendments (n ° 227 and 229 ) to the current law on the modernization of economic life have been tabled to this effect and would make it possible, for example, to use a blockchain for transfers of ownership, be it actions or real estate, replacing certain acts (notarized, typically).

Admittedly, the actual writing of these amendments leaves an extremely broad place to the very notion of blockchain and links it to a definition established by decree of the Conseil d’Etat, which can lead to everything, and especially anything like the legislator is used to it fairly regularly. We must not rejoice too quickly.

However, the very existence of these two amendments makes it possible to glimpse like a light at the end of a long tunnel of obscurantism where, finally, certain deputies have taken the measure of the century in which they register and try to accommodate new technologies. If, moreover, they make for once the effort to incorporate those which are the most revolutionary in their reflections, we can only congratulate them.

Especially since these amendments sign, in practice, the end of more or less clear monopolies of some heavily regulated professions involved in the transfer of ownership, from stock brokers to notaries, and since the purchase or sale of shares up to those of real estate properties. In practice, these two amendments could provoke a real revolution in France which would then take a very serious advance in the mastery of blockchain technologies.

However, do not dream. These innovative deputies will be able to meet the impotent resistance of the most banal conservatism in this old Republic. Jean-Jacques Urvoas, current Keeper of the Seals, showing all the mental opacity it takes to justify his position, has also made it widely understood that he was densely, fiercely and stubbornly against this kind of digital adventure . Before the notaries , the politician was careful not to give the slightest leeway to this abominable idea for the corporation in place.

For the brave Jean-Jacques, the member would like to “allow France to take a legal advance regarding the recognition of the legal effects of the use of the blockchain in transactions on financial instruments and currencies,” and see you, my little friends, “take a legal advance” is something that in France, we do not do: we start like this and, from one thing to another, we modernize, we simplify the bureaucracy, we prune old things rotten, we clean up what I say, we kärcherise, and poof, the country is no longer the same and borders the efficiency. Unthinkable.

The Bitcoin revolution will continue without the French, properly protected by Urvoas and his clique. For others, Chinese in mind, they will see the opportunity to escape the control of capital and perhaps even to make a nice value-added …

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