Bitcoins: What happens if the bubble explodes?

Talking about karma in the world of technology may have something 'magufada'. 
Bitcoins: What happens if the bubble explodes?
This week marks the month of JP Morgan, one of the world's most powerful bankers, to plague Bitcoin. "It's a fraud worse than the tulip bubble," said Jaimie Dimon.  At that time it was exchanged at $ 4,200. He spoke of an "invented" currency, condemned it to failure and questioned the reasoning and intelligence of anyone considering investing in it. 

This Friday, thirty days later, the crypto-money brushed throughout the day the $ 6,000. They can speak of poetic justice, colossal skating or a zasca of manual. The point is that the executive has promised not to talk about it again.
Bitcoin has a soul of the sprinter, financially speaking. He has hit five records in the last quarter. It accumulates an increase of its value of 600% in the last twelve months. The percentage goes up to 2400 if you attend the last two courses.

The euphoria has been unleashed. But also the fear of a possible collapse. On these occasions, there are few who wonder if these valuations are excessive. ”Personally, I have the impression that we are in a bubble,” says Alex Preukschat, author of the book 'Blockchain, the Internet Industrial Revolution'. "But you have to see it with discretion. This is not the first time something like this has happened. "

To illustrate this, this expert recalls the awakening of the railway industry in the nineteenth century. Also the one of the radios or the television. Call to calm. "This situation even facilitates innovation. Look what happened to the internet. The most important things happened after the dot-com bubble. ““When I was 30 dollars and went up to 220, nobody imagined it. And this debate also arose. It's the usual story, “says Preukschat, who also serves as a 'coordinator node' in Blockchain Spain. He defends that the important thing is not the specific bumps, but the sustained growth.

The perfect cocktail: few currencies and demand


One of these price stumblings that caused some turmoil was the 40% drop suffered last month when China made the decision to bar companies from having their money in their balance sheets, thus preventing them from being financed in this way. In addition, Beijing has forced the exchange houses of that country to throw the blind.

What is Bitcoin, then, to resist even against the vetoes of some governments like Chinese or Russian? For a perfect cocktail between a crypto-money whose nature prevents it from issuing units freely and a runaway demand. "In addition, many buy it to keep it for years, so the offer is even lower," he says. "Let no one think that this is a Philatelic Forum. It is a personal opinion but I see that the problem is that to this day Bitcoin's main asset is speculation. It has to be reaffirmed in its other real applications. "


The appendices of Bitcoin: 'forks'


The origin of this new takeoff is in one of the last divorces of the Bitcoin community. Some of the miners who worked it decided to create 'Bitcoin Cash’, a 'fork' or clone of the original with its structure but with slight modifications in its rules and operation to solve specific problems. It was released on August 1st. "Those who had Bitcoins also received, for free, a series of Bitcoin Cash”, says Daniel Díez García, from UST Global and a connoisseur of the digital currency born in 2009.

 "The new ones came in color for about 400 or 500 dollars each on the first day, "he explains.
On October 22, another clone, Bitcoin Gold, arrives. "And in November there will be more," rifles this expert, who has been in the guild since 2011. "What the market is doing is taking for granted that the situation will be repeated," he adds.

A business


Diez avoids the term bubble. "It is difficult to value it as a currency. It is also a protocol for transmitting value through the internet, so it should also be valued as a software company. And it is also an ecosystem. We do not have a reliable index or way of dictating whether there is a bubble or not. "
Bitcoin Cash is not the first derivative of this criptomoney. Nor will be the last. It's what an open source system has. 

There's Ethereum, created by a 23-year-old Russian misfit. "Although many are a failure, others provide interesting solutions like Ethereum. And that competition can push Bitcoin to put the batteries, "Preukschat says in this regard.
"It is neither version 1.0 of Bitcoin"
"Based on my knowledge, I would not recommend anyone to have 100% of the investments in cryptones,” says Díez, who believes that there is a 20% chance that there will be a "significant" setback that leaves Bitcoin in a quote below $ 3,000. "I trust her a lot in the medium and long-term. But we are not even in version 1.0 of the protocol. What happens is that investors and companies have even advanced to the developers who participate in the project itself, "he clarified.

"I think there is an overvaluation of expectations, but not a bubble," says Alberto Gómez-Toribio, founder of Next race. "There are companies that are deciding to finance themselves through an ICO that is, accepting cryptoneses as the only monetary contribution. And that has also skyrocketed interest. "
EFT will allow you to invest in bitcoins in the same way you do with oil

The USA and Europe. That's where most of the bitcoins are moving today. That is why Gomez-Toribio detracts from the vetoes of China or Russia. It also does so with the statements of JP Morgan's boss. "It has been seen that even its employees provide this service to their customers." He thinks the price is "something above what it should be now," but he does not see the shadow of a possible collapse.

Nor does it believe that a "specific regulatory framework" is necessary. "Spain, for example, is one of the best places with the legal reserve for bitcoin and does not have a custom made regulation." Other countries that have taken positions with this way of doing things have been UK, France or Switzerland, already known as the ' crypto Valley ' by a number of companies that have found accommodation there.

And when you cannot create more bitcoins?


21 million. That is the limit of bitcoins that can be created. There are currently 16.6 million in circulation. To create them depends on the army of miners spread all over the world. Thanks to their computers they establish a network for this currency to work. For each one that they extract, they receive a 'prize' that serves to amortize also the enormous electric bill that derives from this work. "Every four years this payment is reduced by half. Now it's 12 bitcoins and a half. But there will come a time that will be almost zero, "he explains.


The other incentive commissions. 


That's what the miners will live when that quota of 21 million has been reached (something that could take up to 130 years). To this day, to pay a t-shirt of ten euros in bitcoins you would pay a commission of 70 cents approximately. With PayPal, about 25 cents. "There will be many more applications based on Bitcoin," predicts Preukschat. "Currently it is not a currency to make a massive use. It is more interested in people who want to diversify their investment portfolio, "says Gómez-Toribio. But it's not all speculation. It is also a refuge value. This has been made clear by the Venezuelan crisis, where many have found in bitcoin a way to escape the country's monetary collapse.


Powered by Blogger.