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In recent months, the value of cryptomonete, Bitcoin, has decreased. And in the last hours they are hit new registration numbers, with values that have not been seen for years and made the folly of last December a very pale memory. But why is this happening? Can the same "normal" stock market valuations be applied? Nathaniel Popper, a financial reporter at the New York Times, believes the reasons are specifically related to the problem of cryptocurrency. According to Popper, there are at least five reasons why we are seeing this phenomenon
The lack of rules
If there is a "bitcoin philosophy", it is probably based on the absence of central controls, whether it is banks or states. The idea of an absolutely free currency is certainly a powerful image, but the absence of rules also means that it is very easy to play dirty. Thefts and scams are on the agenda, and it's not always possible to locate the offenders and charge them. From simple investors (mandatory quotes) to market managers, there are many people who can change the market. According to Popper, this phenomenon has, over time, undermined the trust of honest investors.
The rules arrive
If on one side the far west discourages someone, on the other the dream of others. A dream that gradually becomes smaller, more modest; because the authorities around the world approve every day new laws that limit the possibilities for action. There are those who have declared the ICOs illegal, those who prevent access to trade, those who demand unwelcome taxes to supporters of absolute freedom.
These rules have multiple objectives, from the protection of small savers to the defense of this or that interest (public or private). The fact is that moving up a gear is every day more difficult. The less stubborn ones start to move away from what once seemed like a new El Dorado.
Management in the hands of developers
There are thousands of crypto-currencies, each referring to a specific project, and each project is managed primarily by developers. The technical staff with specific preparation but Popper cites the birth of Bitcoin Cash and its recent division into two other groups, with some tendency to create chaos. Such actions, the journalist says, fundamentally reduce trust. Another element that keeps investors away.
The continuous birth of new pieces, due precisely to the attitude of the "developer", should also be cancel the idea of scarcity. Because it will also be true that there will finally be only 21 million Bitcoins in the world. But no matter if there are also billions of alternative currencies.
Real applications are missing
The experiments and proposals for blockchain use are numerous, but among the concrete cases, the scenarios in which a cryptocurrency has actually entered the real world and made the difference, there is nothing about it. has not. It has been said that the cryptocurrency phase would soon end up as a speculative badet and that a new era of technological applications would begin. However, to date, what can be done with blockchain can also be done with other, simpler systems. It seems that many are tired of waiting.
Governments could enter the game and do better
The last point raised by Popper is also the most sensitive. National governments and central banks could – it seems likely – create each their own digital currency. Do not create imaginative electoral systems or get faster payments (the ones we already have fast enough), but improve somewhat the transparency and reliability of the existing monetary system. And in doing so, they could remove from the independent cryptocurrency many reasons to exist.
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