Bitcoin, ultimate collapse or reasons for hope?

Is it the ultimate tumble, the one from which no one will recover, or is it a jolt, a hollow that must be taken advantage of before a dizzying rise? This is essentially the question that agitates the community of cryptocurrencies, now digital assets. Over the weekend bitcoin plunged below the symbolic bar of 20,000 dollars to 17,599.73 dollars, its lowest level since 2020. But cryptos have become a social issue. They concern 300 million users and despite their collapse, the crypto.com platform extrapolates that the billion users will be reached by the end of the year. More cautious, the ECB estimates that one in 10 European households has invested in crypto-assets and notes that the sector remains very dynamic with 16,000 crypto-assets in circulation.

You have to be right

For Alexandre Stachtenko, director of blockchain and cryptos at KPMG, we must be right. “There are crises and realizing it is not the first time. There were crises in 2013, 2018, 2022. As the prices are higher, the impact seems much stronger. But when the bitcoin went from 1,200 dollars to 100, the collapse was much more serious than today when we went from 60,000 dollars to 20,000.” For comparison, bitcoin is at its level of last year, just like gold, while the euro lost 20% and Meta (Facebook) 30% over the same period. Big tech stars like Apple have lost nearly 25% since the start of the year. “You have to look at the fundamentals, continues Alexandre Stachtenko, they are good. There is a real adoption, both in terms of individuals and companies. Bitcoin is young, it is a risky technological market. The crash is a way to clean up the industry. Some cryptos will disappear. But bitcoin remains.”

Bitcoin is not based on anything

A point of view that does not differ from all observers. Natacha Valla, economist, dean of the School of Management and Innovation at Sciences Po, recalls that these digital assets do not offer any guarantee and that they have no intrinsic value. Same story with Christine Lagarde, President of the ECB who warned on May 23: “My very humble assessment is that it is worth nothing. It is not based on anything, there are no underlying assets to act as a safety anchor”.

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