Bitcoin Forum

Bitcoin is a financial UFO. Launched in the aftermath of the 2008 crisis, its designer's objective was to create a digital currency whose operation would be dematerialized and independent of banks and governments. Bitcoin is in fact only one of the modalities of the blockchain that refers to a decentralized computer protocol that records each transaction (amount, sender, recipient) in a theoretically tamper-proof and unforgeable manner on a digital ledger. One of the major advantages of Bitcoin is the savings in transaction costs without the intermediary of banks. Bitcoins are issued during the transaction validation process by so-called "miners". They provide the computing power of their computers and receive bitcoins in return.

Like all financial instruments, its price is determined by the match between supply and demand. But as the market authorities point out, Bitcoin is not legal tender, because it is not strictly speaking a currency. The value of a bitcoin also comes from the fact that its quantity is in principle limited to 21 million units.

Bitcoin doesn't pay off. Only the increase in the price can enrich its holders. And this price is particularly volatile. This is reflected in its steep fall this year: since January, its value has fallen by 60%. In 2017, its value exploded by more than 2,000% to nearly 16,000 euros. By way of comparison, the price of an ounce of gold has fallen by 1.2% since 1 January 2018 when the CAC 40 granted a 6.23% discount (as at 23 November 2018).

But this volatility that characterizes Bitcoin is precisely what attracts many speculators. Since its creation - and despite the recent very large correction - its value has risen from a few cents to nearly 3,500 euros today. Those who bet on Bitcoin are also betting on its democratization and the associated upside potential.

In addition to those related to price volatility and the very relative reliability of certain platforms, it should be recalled that the purchaser of this type of asset has no recourse in the event of a problem. The purchase or sale of bitcoins and the investment in bitcoins are currently carried out outside any regulated market.  Bitcoin is one of the assets, sometimes wrongly referred to as virtual currencies' or'cryptomones', that currently exist in the world. It can be exchanged online and is not materialized by any part or note.  It is not legal tender unlike currencies issued by central banks. There are risks of piracy of bitcoin portfolios. Warnings not to be overlooked.

 I would say that Bitcoin is one of a kind, and you cant compare it with the things we knew before. It is a completely new system, that we need to explore and use.

You just mailed it really well. Bitcoin is just one of it's kind that cannot be compareed compared with anything else. Blockchain Technology is a new innovation.

I think Bitcoin is different. It is a game-changer and it's future is unknown but exciting. :)

Tl;dr bitcoin is somewhat special in some ways and does not want to be categorized. Well countries are making their moves to recognize bitcoin as a legal tender, an asset and a recognized currency due to their legislative frameworks and definition for the said system/technology/whatever. It's only a matter of time before countries start to treat bitcoin as traditional assets, legal tender or a currency, making its use subject to existing laws and regulations of the country's jurisdiction.

As for its value and whatnot, it's being treated more of an asset than a currency, given that the practical way to use it in the meantime is an investment, rather than using it to pay for goods. People seek profit from trading bitcoins like stocks and it has been the norm for some 8> years now, and I guess it will continue to be one as long as merchants wouldn't take the risk and accept it on their platforms.

For some, it's indeed just another financial vehicle.

But if you look deeper you'll see some "oddities": Bitcoin is created out of nothing and the price is dictated by the unregulated free market (with its good and bad points).
And this makes it different.
The ones not reaching deeper inside what is Bitcoin and why it has this success may fall for the speculators' spawns preaching that Bitcoin is a Ponzi, that it worth nothing and so on.
The ones not reaching deeper inside may make mistakes and lose their money due to mistakes, scams or hacks.

So yes, it's different and needs more attention, although at the first sight it is more than accessible.