June 23, 2021

Bitcoin also collapses

Bitcoin lives in a constant comeback at medium gas. The longest cryptocurrency is going through another complicated week. The price of bitcoin fell 5.5% yesterday, a drop that joins the crash of 7.7% the previous day, when it was below $ 10,000 for the first time since August 1.

The flood experienced in early August seemed to support the "crypto-enthusiasts" who came to speak of bitcoin as a refuge value at the height of gold or the Japanese yen. As they are not subject to any commercial reality, these currencies seem to be totally immune to the shocks of the trade war between China and the United States. The drop in Fed rates and the depreciation of the Chinese yuan appealed to bitcoin in response to geopolitical tensions. At the same time, With the major currencies depreciating, bitcoin benefited from a more than remarkable rebound. However, the ignorance surrounding its link with the markets makes it virtually impossible to find an explanation for its ups and downs.

Betting on these assets has become an act of faith due to their instability and lack of security. Despite the fact that at the end of this edition it was once again over $ 10,000, its value constantly flirts with this psychological barrier. Its price sank yesterday to 9,573 dollars, compared to 11,512 with which the week began, a fall of almost 17%. This fluctuation seems barely insignificant compared to the huge gap that reached between its highest value of 2019, $ 12,996, and its lowest value, $ 3,216. In this fall, bitcoin took ahead of other major cryptocurrencies, such as Ethereum and Ripple's XRP. The first of them suffered a decrease of 18% compared to its price on Monday. On the other hand, Ripple's XRP fell 17%.

Bitcoin uncomfortable. Being out of the system, its use weakens control over the financial and monetary policies that states now have. Its operation basically consists of a blockchain or "blockchain" in which the users are the nodes and the record of the encrypted transactions are the blocks. This "money" with which we can make all kinds of transactions is stored in digital wallets in the cloud. The main difference with other online payment methods is the elimination of intermediaries: banks.

Although its encryption system claims to be safe, the opposition of various agencies has made a dent on its reputation. Trump began the offensive against cryptocurrencies last month. On Twitter, he said that bitcoin is not money and that its deregulation can serve as a tool for criminal practices such as money laundering or drug trafficking. To this harassment was added the US Senate that rejected the "Libra" Facebook project. The G-7 was not far behind and demanded Mark Zuckerberg, founder of the social network, a strict regulation of its new cryptocurrency to avoid fraud.

. (tagsToTranslate) finance

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