Like the champagne foam, the bitcoin and the rest of cryptocurrencies have fallen as fast as they went up. At the end of 2017, a bitcoin traded at almost 13,000 euros. A little over a year later, its value has fallen to the environment of 3,200 euros, accumulating a 75% depreciation that triggers doubts about the survival of cryptocurrency calls.
Currently there are more than 1,500 types of virtual assets, as preferred by the Bank of Spain, in circulation. In September 2018, it was estimated that almost 200,000 million dollars (176,280 million euros) were moved in the market, although these amounts could vary ostensibly since there are no issuers or regulators. The Bank of Spain has warned that they are not regulated by the Spanish legal system nor are they supervised in any way. In fact, the monetary authority has warned that cryptoactives are subject to strong oscillations because their value depends on other users willing to acquire them. "Price formation is not transparent and could be manipulated," he says. And, what is worse, they do not have the backing of the deposit guarantee fund.
In other words, even monopoly money has more support than bitcoin. The meteoric rise in cryptocurrencies made those who entered the business rich before the "boom" of 2017. Those who entered in 2018 are still paying for it.
The mechanism of operation is simple. Through blockchain technology, investors buy, paying in real currencies, algorithms or bits of algorithms from which these cryptocurrencies are formed. As Leif Ferreira, CEO and founder of BIT2Me, admitted to this newspaper, cryptocurrencies are not subject to any government or any bank in the world.
Its opacity as a system for channeling large sums of money has been the object of controversies about the possibility that they can be used to launder money from illegal activities. For this reason and because their action is beyond the control of the banks and the governments and their respective haciendas, they can be behind the causes of its resounding collapse and its future as investment vehicles.