Bitcoin loves roller coasters. Its value oscillates between particularly low levels, such as in June 2022 when it reached around $17,000, and historical records, such as November 2021 when it reached around $68,000. “Good news“For cryptocurrency investors in Provence (and Navarre), the price of Bitcoin returns to the peaks in 2024, until it set a new record of more than $69,000 on March 5. In the last 12 months, its price has increased by 196%. .
A spectacular climb that inspires you again after a few setbacks. “Since he moved back, I hope to find at least 10,000 € That I invested, or ideally €16,000 that I managed to get to the exclusive platforms Kraken and Binance before the prices drop from the end of 2021.Arnaud, a 36-year-old resident of Aubagne, who started investing his money in cryptocurrencies in 2019, testifies. At my lowest point, I was down €5,000. Obviously, this gave me the ‘shit’ regarding a work project at home. I felt very guilty, especially towards my wife. Today, I am at €8,000 and growing. When I reach a satisfactory level, I will take my winnings and I will leave some money, because deep down, I believe in it a lot.“
If the volatility of the most famous cryptocurrency is a reminder of how volatile it can be, how can we explain such a surge?
Launch of the first “Bitcoin ETF” in the United States
Three major events fueled Bitcoin’s rise in value. Beginning with the launch of the first “Bitcoin ETFs” in the United States on January 11. “These products make investing in Bitcoin as easy as buying shares in the stock market. Basically, you buy shares in funds that hold bitcoins for you (BlackRock, an American multinational company specializing in asset management, is the first of them).schematizes the expert Gregory RaymondCo-Founder and Research Director of Media The Big WhaleSpecializing in digital assets. No more worries about ensuring security and it eliminates the risk of piracy. This is a significant step forward in terms of accessibility for traditional investors. Since January 11, various ETFs have raised more than $11 billion: No other asset has seen such a surge since the ETF’s launch, not even gold.“
Expected event to occur every 4 years: “Half”
Another event that affects Bitcoin price growth: Investors’ expectation of a “halving” (English word meaning “division in two”, editor’s note) that happens automatically every 4 years. “In mid-April, the Bitcoin protocol will halve its monetary composition. While currently 6.25 bitcoins are created every 10 minutes, after this date only 3.125 will remain. The estimated date is currently April 16, but that could still change“, originally from L’Isle-sur-la-Sorgue (Vaucluse), popularized Gregory Raymond.
Very concretely, monetary issuance will decrease, and, assuming demand remains the same, the price of Bitcoin should increase. So this method makes it possible to support the value of cryptocurrency.
Entry into force of the European Regulation MICA (Markets in Crypto Assets).
A third and final factor plays a role in this surge. The European MiCA (Markets in Crypto Assets) regulation, which aims to regulate the digital assets industry, will come into effect this year. “Certainly, investors will be better protected because the platforms on which we buy and sell crypto have barriers almost as important as banks. This is likely to reassure investors and another argument that underlines the institutionalization of the sector.“, summarizes the media’s research director The Big Whale.
For that, Bitcoin has become an asset class.Like others“And it can be interesting to have some in your assets to diversify:”I advise you to invest only what you are willing to lose, like in stocks.“
What is Bitcoin?
Because a little reminder never hurts, here’s how Bitcoin works. “The Bitcoin network is protected by thousands of “miners” who run very powerful computers. It is this computing power that secures the network. Bitcoin has never been hacked, making it one of the most resilient systems in the world in terms of cyber security“, popularizes Gregory Raymond, co-founder and research director of The Big Whale, a media outlet specializing in digital assets.
“Each Bitcoin transaction is stored in a distributed ledger across all participants in the network, called the blockchain. Absolutely everything is transparent and anyone can check the transaction flow on the blockchain“, he continues.
What is the “Quality” of Bitcoin?
For an expert, Bitcoin has many merits: “CIt is a decentralized currency, which means there is no company or country that controls it. It is managed by its community which is spread across the planet. We can’t jail the CEO of Bitcoin because he doesn’t exist. It’s a bit like the internet, there’s no internet boss, it’s community governance. It is therefore relevant to introduce Bitcoin as the currency of the Internet“
It is also a currency”Insensitive” : ” pIf you keep it in a personal digital wallet, no one can confiscate your bitcoins without your permission. This is an advantage over your bank account that can be confiscated at any time (so it is useful in some authoritarian countries).“
After all, its quantity is limited: “IThere can never be more than 21 million bitcoins in circulation. Currently there are 19.6 million. With the game in the next half (See point above, editor’s note), will have to wait until 2140 to create the last bitcoin. This concept makes sense because traditional currencies are inflationary“
