Evolution and future of cryptocurrencies

There is an open debate about whether crypto-currencies and the blockchain – the technology that runs the system – are transforming the world or are just another economic bubble. The rise and fall of Bitcoin and Ethereum have become the object of a global fascination, generating discussions in which the prophecies of renewal and social reform mingle with promises. of instant wealth.

The crypto – currency price boom, which appeared last year in the midst of an avalanche of initial currency offers (OIC), is accompanied by an upsurge in prices. proportional media coverage with information and reporting on what a new type of currency could entail, in addition to the opportunities offered by the blockchain applied to other areas. In fact, for some experts, it is precisely the concept of the blockchain that has the potential to radically change the systems with which any transactions and data recordings are made.

But this steep price increase in 2017 was followed by a long fall which, this summer, made us fear for the future of the entire cryptocurrency system. Bitcoin, the most popular currency, has been reduced its value of $ 19,200 from December 2017 to $ 6,500 at the beginning of October, which represents a decrease of 66%. In the case of Ethereum, its main competitor reached its maximum price in January of this year 2018 ($ 1,380), but is currently at 220.

Deregulation and doubts

This oscillation of the value of digital currencies owes a lot to speculation, according to experts. The very essence of cryptocurrencies, which are deregulated and unrelated to a central bank that can support them, means that they are exposed to any price fluctuations caused by a sudden increase in demand. and by a limited supply by design. In addition, as was the case with stock market and real estate bubbles, some users attracted by dubious offers ended up losing a lot of money.

But the boom and fall illustrate the extremes of a continuing debate about what cryptocurrencies and their technological underpinnings can bring. The big figures in the world of finance call "fraud" – or, in the case of Warren Buffet, "matarratas" – crypto-currencies and recommend investors to stay away. In a somewhat less alarmist line, a recent Barclays report summarized his vision of this market: "Cryptocurrencies can have a place in the corners of the global economy with less confidence. [en los sistemas]but the wider adoption of these technologies is fraught with critical challenges and powerful competitors. The report concludes that "the speculative interest in digital currencies may have already reached its peak".

A new type of Internet

Meanwhile, loyal cryptocurrency and some big investors continue their work. Some of the developers behind the major virtual currencies continue to believe in building an alternative global financial and computing infrastructure. a new way to manage money and identity, a system that they describe as a better and more decentralized version of the World Wide Web – a Web 3.0 -.

This version would be more in keeping with the original promise of the network and less the landscape of giants and monopolies in which it has become. A new system – which can be applied in everything from banks to health care to global food – replaces the old or at least an alternative without borders, independent of state control and its exploitation by Big Tech .