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The beginning of the end? Not so sure

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The descent into hell of a large cryptocurrency exchange platform has notably brought down the queen of virtual currencies: bitcoin, already very low, in a market that is still very young and more fragile than ever. On the edge of the break…

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Blockchains, coins, tokens, mining, proof of work, halving, staking… Behind this anglicized jargon, is there, as the philosophy of cryptos wants, the promise of a financial revolution and the “never again” crisis of 2008? Or is there a simple virtual replica of the old banking world, with the same speculative strings that can lead to resounding bankruptcies? The FTX Collapse, sometimes called the Lehman Brothers of cryptocurrency exchanges, leads to the second hypothesis. Incestuous links between sister companies, lack of reliable financial information, assets that are more fictitious than real, borderline legal management, countless offshore investments… Does that ring a bell?

Demands for regulation come from bitcoin users themselves.

Founded in 2019, with a board of directors made up of himself, his lawyer and an employee, the company of Sam Bankman, this “awesome” retarded teenager with a firecracker hairstyle, recently sparked an earthquake in less than 24 hours. of $240 billion on the crypto planet which still fears high magnitude aftershocks. The end of Bitcoin was however announced a little hastily by its detractors. The November earthquake will leave heavy scars, but is not a first. A few years ago, another reference platform, the Japanese Mt.gox, came across the huge scandal of 650,000 bitcoins evaporated, without fatal consequences for cryptos.

the Bitcoin was created twelve years ago by one or more libertarian developers – the mystery of the paternity of Satoshi Nakamoto remains intact – whose basic precept was that money is too important a thing to entrust its piloting to a few thinking heads of central banks. The cryptocurrency system operates in a decentralized manner, with no single authority or administration. However, it seems that the consensus of its followers is no longer enough. Demands for regulation come from bitcoin users themselves. A binding framework is being adopted in the European Union, now the largest cryptocurrency market in the world.

The tax authorities of most rich countries are also worried because, with such borderless and anonymous assets, they find it difficult to verify whether the tax due has been paid. The OECD now provides for a standardization of reporting obligations on crypto transactions and the EU is pushing its members for more tax coherence. But Bitcoin and its peers are also under attack on the green front: gestures of good intentions to reduce their appalling carbon footprint are multiplying, without conclusive results so far. The question therefore arises, a fortiori in the light of the current crisis, of the societal utility of such an energy-intensive activity., created from scratch not even fifteen years ago. The beginning of the end of cryptos? Not so sure.

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