About 10 years ago, someone has had the great idea of creating a virtual currency with a reduced supply that does not require banks intervention in order to make transactions. It is believed that the developer (s), known as Satoshi Nakamoto, started writing the code in 2007, to launch the network and the first bitcoins in January 2009. In order to create new bitcoins, it is necessary to constantly use more powerful computers and more energy, and the transaction costs to buy them are therefore constantly higher.
Llyod Blankein, the CEO of Goldman Sachs, explains that « the population was also very skeptical when fiduciary money replaced gold » and plans to open a trading room dedicated to Bitcoin and other « crypto-currencies » in response to the many customers’ requests of its.
Bitcoin already has a capitalization of almost 200 billion dollars. It is growing strongly and is becoming increasingly accepted as payment method and as a safe haven. However, this is only this new phenomenonemerging face. There are many other currencies that start competing with Bitcoin such as ether, dash, monero or ripple. Today Aespen has more than 1,800 crypto-currencies and Bitcoin now accounts for only 40% of this new market that is exploding.
Crypto-currencies form a strange and fascinating world in which the uninitiated finds it difficult to navigate. The Internet, in the early 90’s, revolutionized communication with HTML pages that can be exchanged via URLs via the HTTP protocol. Crypto-currencies are one of this new universeextensions : new computer technologies, independence from political power, new utilities brought to consumers.
The first characteristic of a crypto-currency is to be completely electronic. It exists only on computer network. In other words, if you do not have a computer, tablet or mobile phone, you do not have access to this type of currency. Traditional currencies such as the euro exist as notes or coins, which is not the case for crypto-currencies. But you should know that traditional currencies are increasingly dematerialized. Thus, when you make a transfer, you electronically transfer a sum of money from one account to another. It is the same for the samples. Coins and currencies represent only 15% of the currency in circulation.
A second difference lies in the very nature of money. Traditional currencies are mainly bank account entries kept by bankers. A transfer is therefore to write on a debit account and to spend the same writing, in the opposite direction, in credit on the account of the bank that receives the money. Crypto-currencies are computer codes, programs, which are sent from one computer to another. That’s why they are 100% electronic and secure.