Bitcoin: Is it real currency?
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We hear everywhere that Bitcoin is not a real currency. In substance, this statement cannot be disputed since it is a virtual currency. There are no coins or notes in circulation. Yet we will see that Bitcoin shares many characteristics of a real currency such as the Euro for example.
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So there is no organization which secures your account and we know very well that a computer can be easily pirated. If your PC has a technical problem, you can also lose your safe and therefore all your money!
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There is the visible part or the internet, the part you know and which is accessible with traditional search engines such as Google and there is also a hidden, invisible part. It is estimated that these unlisted sites represent 90% of the web. The traditional Internet is therefore the tip of the iceberg. However, this statement must be qualified by the fact that the majority of these unreferenced sites are intranet networks or blogs with simple access codes. But there is another part of the web, deeper and more secret, called the Darkweb.
The Darkweb is beginning to become more democratic. Where only a computer scientist was able to access it a few years ago, it is now easy enough to download some software to have access to a Darkweb search engine, a kind of google on the dark side. Navigation on the Darkweb is completely anonymous, it is impossible for the authorities to identify you. Experts will tell me that there's surely an IP address. Well no, the software to access the Darkweb scrambles its tracks. It gives your PC the IP address of other users connected to the Darkweb, an IP that changes every second. Your connection to the Darkweb leaves no trace anywhere.
On the Darkweb, you can find everything and anything but especially illegal products/services. You can find weapons, drugs, stolen credit cards, buy followers on twitter or likes on facebook, buy the services of a hacker, etc., in short everything that is illegal. All this within the reach of whoever gets there first. An M6 reporter during an exclusive investigation on the Darkweb, for example, bought a weapon while standing on the steps of the Grande Arche of Paris La Defense. It sends shivers down my spine!
Bitcoin is the official currency on the Darkweb. All the crooks, the Mafia, the traffickers, etc. use this virtual currency! You can't pay with anything but Bitcoins on the Darkweb. It exploits an advantage of Bitcoin which is that is stays anonymous with every transaction. If you buy Bitcoin with euros, no one will know.
This whole underground economy revolves around Bitcoin. I don't have a number to give you, but no one will challenge that this market is huge.
Bitcoin has all the characteristics of a real currency. Its critics will say that no geographical area recognizes Bitcoin as an official means of payment, but this is the case on the Darkweb (even if it remains a virtual space). This currency is tending to develop throughout the world and the number of transactions in Bitcoin is constantly increasing. However, it is important to note the significant risks that this currency presents, particularly on its highly fluctuating value and the storage risk. As long as Bitcoin is not subject to any regulation, it remains more a temporary means of payment than a real currency in the true sense of the term.
Bitcoin: The characteristics of a currency
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Unit of account
: Bitcoin can be used to measure the value of goods or services and so buy and sell them. Bitcoin allows for price comparison between different products/services.-
Means of payment
: Many chains now accept payment in Bitcoins. There is even a terminal in Canada where you can top up your Bitcoin account directly with Canadian dollars. With the rise of this virtual currency, more and more retailers are gradually accepting this means of payment even if it is still minimal for the moment.-
Bitcoin quotations
: Like many other currencies, the value of Bitcoin fluctuates in the financial markets. Bitcoin's value is therefore determined by the interaction of its supply and demand.-
Savings
: You can store Bitcoins in a savings account. It's a bit like saving part of your salary in Euros and putting it in a savings account.-
Exchange
: Bitcoin has legal value against other currencies. You can therefore buy euros with Bitcoins or vice versa. This therefore erases one of the shortcomings of Bitcoin, which is that it is not legal tender in a geographical area. Not being legal tender means that everyone has the right to refuse to be paid in Bitcoin. The Euro is legal tender in the Euro zone but not in the United States for example.Bitcoin: What are the risks?
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Counterparty risk
: If no one wants to buy your Bitcoins, they are worthless and cannot be exchanged against other currencies. No financial institution (such as a bank) will agree to exchange them for another currency.-
Storage risk
: If you have a bitcoin accountor more precisely a safe to store your Bitcoins, the storage is done directly on your computer or smartphone (and not elsewhere). It is therefore very different from an account in a bank that is accessible everywhere.So there is no organization which secures your account and we know very well that a computer can be easily pirated. If your PC has a technical problem, you can also lose your safe and therefore all your money!
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Value risk
: The value of Bitcoin on the financial markets is very volatile. So your wealth is very volatile. You should therefore pay close attention to your timing if you buy Bitcoins. No body controls its value as is the case with the ECB with the Euro for example. You can consult bitcoin analyses on CentralCharts’ website.Bitcoin: The Darkweb’s official currency
There is the visible part or the internet, the part you know and which is accessible with traditional search engines such as Google and there is also a hidden, invisible part. It is estimated that these unlisted sites represent 90% of the web. The traditional Internet is therefore the tip of the iceberg. However, this statement must be qualified by the fact that the majority of these unreferenced sites are intranet networks or blogs with simple access codes. But there is another part of the web, deeper and more secret, called the Darkweb.
The Darkweb is beginning to become more democratic. Where only a computer scientist was able to access it a few years ago, it is now easy enough to download some software to have access to a Darkweb search engine, a kind of google on the dark side. Navigation on the Darkweb is completely anonymous, it is impossible for the authorities to identify you. Experts will tell me that there's surely an IP address. Well no, the software to access the Darkweb scrambles its tracks. It gives your PC the IP address of other users connected to the Darkweb, an IP that changes every second. Your connection to the Darkweb leaves no trace anywhere.
On the Darkweb, you can find everything and anything but especially illegal products/services. You can find weapons, drugs, stolen credit cards, buy followers on twitter or likes on facebook, buy the services of a hacker, etc., in short everything that is illegal. All this within the reach of whoever gets there first. An M6 reporter during an exclusive investigation on the Darkweb, for example, bought a weapon while standing on the steps of the Grande Arche of Paris La Defense. It sends shivers down my spine!
Bitcoin is the official currency on the Darkweb. All the crooks, the Mafia, the traffickers, etc. use this virtual currency! You can't pay with anything but Bitcoins on the Darkweb. It exploits an advantage of Bitcoin which is that is stays anonymous with every transaction. If you buy Bitcoin with euros, no one will know.
This whole underground economy revolves around Bitcoin. I don't have a number to give you, but no one will challenge that this market is huge.
Conclusion
Bitcoin has all the characteristics of a real currency. Its critics will say that no geographical area recognizes Bitcoin as an official means of payment, but this is the case on the Darkweb (even if it remains a virtual space). This currency is tending to develop throughout the world and the number of transactions in Bitcoin is constantly increasing. However, it is important to note the significant risks that this currency presents, particularly on its highly fluctuating value and the storage risk. As long as Bitcoin is not subject to any regulation, it remains more a temporary means of payment than a real currency in the true sense of the term.
