Bitcoin: a volatile currency

Cryptocurrencies have gone from a niche phenomenon to something major. The Trump administration has even said it wants to integrate them into the US Federal Reserve by 2025. The most proven, Bitcoin, was born in 2008 in the wake of the economic crisis. As banks and other traditional economic systems collapsed in part, this led to widespread distrust on the part of libertarians and others. Crypto-currency was seen as a dream solution: a decentralized currency accessible to all.

But between fantasy and reality, it hasn't turned out that way. Already today, the idea of democratization has been quickly lost to senseless capitalist speculation, especially as there can only be 21 million Bitcoins in the world. What's more, the currency is extremely volatile. It can lose 50% of its value in a few days, and regain 80% or 100% six months later.

Some have paid dearly for the desire to achieve higher returns than those available on the stock market. Last but not least, the banking world has become so interested in cryptocurrency that it has bought itself a third party that can monitor people's investments. A good idea for those afraid of forgetting their password to access it, but one that runs completely counter to the principles on which it was created.

Today, Bitcoin seems slightly interesting as an investment, but as a currency, it is little used in commerce. It has to be said that above a certain amount, it becomes slower to pay with this cryptocurrency than with traditional money.

Length: 23min27

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Image: Bartek Kopała from Pixabay