economic analysis of crypto-currencies catherine eng abel derderian english track, 17/05/2014
TRANSCRIPT
ECONOMIC ANALYSIS OF
CRYPTO-CURRENCIES
Catherine EngAbel DerderianEnglish Track, 17/05/2014
THE CRYPTO-CURRENCIES (As know as Bitcoin, Dogecoin, Blackcoin, etc…)
• How the crypto-currencies system works ?
• How is it possible to create a decentralized digital currency and unregulated?
• Is it reliable over the long term? Can we trust it?
CRYPTO-CURRENCIES, WHAT IS IT ?
• A crypto-currency is a virtual currency, which create and exchange on the Internet. Its transactions and security are provided by a P2P network.
• You can create some “coins” of a crypto-currencie in solving complex equations for the encryption for the Global Network.
THE ECOMICS CHARACTERISTICS
• No regulation
• High price volatility
• Anybody, with a computer, can create some « coins ».
• No control except the choice of the users (like Wallstreet, in fact)
WHY DO PEOPLE START TO USE IT ?
• The « facility » : If you have the opportunity to create money, you miss out on?
• The “snowball effect” : When bitcoin took in value very quickly, the medias (and by consequence a lot of people) where suddenly interested in. And the value reach the point of 1 bitcoin = 1000$ with this.(November 2013)
• It’s a way to quit the financial system, that disappointed the people since the subprime. For crypto-currencies : no account, no card, no speculation : You have what you have, and you’re keeping in your wallet
BUT… WHAT’S THE NEGATIVE POINT ?
• The good point IS the bad point.No regulation = No control = No way to stop the fall of the currency (in case of).
• The volatility : You can invest 1$, waiting and get 1000$ in coins.As you can invest 1000$ and get 1$ in coins.
THE PLACE OF CRYPTO-CURRENCY IN THE GLOBAL ECONOMIC MARKET
• In December 2013, the mass of all the Bitcoins was equivalent to 14 000 000 000$
• A lot of crypto-currencies are created everyday : No futur for them, but they contribute to the democratization of virtual currencies and decentralized
• Many websites accept payment incrypto-currency, and recently Monoprix announced that they would be one of the first companies to officially accept crypto-currencies.
CONCLUSION
•Our personal points of views
Thank you for your attention ! ☻