Will the Cryptononedas destabilize the balance of economic power?

in #economic7 years ago


Undoubtedly, the evolution and implementation of these investment instruments should be closely monitored, since it is an indisputable fact that the Cryptomonedas can change the world of finance. It is said that the virtual currencies or criptomonedas had its origin in the year 2009 of the hand of a Japanese, Satoshi Nakamoto, which has come to think that it is not a person, but a collective. The first virtual currency was called Bitcoin. And the motivation for its creation was that this currency was not controlled by any State, nor any financial institution.

A cryptomoneda may well be considered, undoubtedly in practice, as part of what is generally understood as money, since it can be used to make payments. It is also possible that it is a way of depositing the wealth that is possessed. So, undoubtedly, it could well get to fit within what is considered M1.

It must be said that cryptomonedas can not be physically acquired and, therefore, it must also be kept in mind that it requires a "digital portfolio" where we can store them, because only then can it be treasured. The ways to get these virtual coins are by creating and exchanging them. This creation of criptomonedas is usually called mining. And it is done through complex encrypted algorithms, which allow to realize its creation.

The virtual currencies are used to be able to treasure, through them, the wealth and also, of course, to use them as currency of exchange to be able to realize payments of goods and services.

It should be borne in mind that since the first virtual currency was created, its number has grown considerably, and there are now more than eight hundred different ones. To cite only some of the oldest and most successful, without being exhaustive, I will point out these:

  • Litecoin (2011): based on another cryptographic function (Scrypt).

  • Namecoin (2011): which contributed to the decentralization of DNS for less traceability and, consequently, anonymity.

  • Peercoin (2012): as a hybrid POW / POS system.

  • Dogecoin (2013): It started as a joke and has become a successful cryptonnet.

It should be noted that in February 2011, Bitcoin achieved parity with the dollar and was consolidated as virtual exchange currency. It should not be overlooked that in October 2013, Bitcoin's first cash machine was created in Vancouver (Canada). And in November of 2013, its quotation against the American dollar already exceeds the 1,000 dollars. Although a month later, in December of 2013, it underwent in its quotation a fall that put its exchange rate to 600 dollars. The reason was the prohibition, in some countries, of its commercialization. In the year 2015 it reached a price of 235.69 Dollars. Today it is believed that the daily volume traded for cryptomonedas can exceed, by far, two hundred million euros.

It should be borne in mind that the Fincen (Financial Crimes Enforcement Network) drafted a document which concluded that the cryptones were considered as a means of monetary exchange that can come to operate as money, but which evidently does not possess the attributes Of traditional money, and therefore, logically, can not be considered as legal money.

Fincen considers digital money exchange sites just as money service businesses. And in the light of all these controversies, especially in relation to legal certainty, you have to be very careful with the criptomonedas, since that lack of regulations that leave well clarified its way of proceeding, so that there is no doubt as to It can make holders of such virtual coins have unwanted surprises.

In addition, the large number of virtual currency types undoubtedly causes a spreading of their objectives and interests that do not help in any way to achieve them, as a result of not having a clear investment instrument. And without the elimination of this dispersion, I believe that it will not really be able to consolidate itself as a valid alternative financial instrument. For I am absolutely convinced, openly speaking, that if this virtual currency comes to overcome these problems that surround it will undoubtedly be an element that will inevitably provoke that the nuclei of current economic power vary, substantially. And that this even makes change the economic-financial balance, that exists at the moment, in our world.