Bitcoin is reaching record valuations and many investors, both individuals and professionals, want to take their share. This currency, which is not really one, arouses covetousness, but investment is not without risks. Valuation, control, position of Europe... Novethic deciphers in five questions what you need to know about these cryptoassets.

How much is a bitcoin worth?

Over $40,000! This is the record valuation that bitcoin reached at the beginning of January, before falling back and stabilizing around $ 30,000. Over the year 2020, the price of bitcoin has been multiplied by four, enough to attract many investors both professional and individual. However, this digital currency is characterized by high volatility, so much so that market regulators point to the risks for investors. "If consumers invest in this type of product, they must be ready to lose all their money," warned the Financial Conduct Authority, the policeman of the British markets, at the beginning of January.

Why is bitcoin controversial?

The possibility of anonymity for its holders does not only attract investors in need of yield. Bitcoin is often suspected of being used for illegal operations, although it has now become much more frequent. Another criticism: this cryptocurrency is not really a currency, because it does not emanate from a sovereign state. Minting money is normally part of the sovereign powers attached to a state, bitcoin is on the contrary a purely private asset. This is precisely what was blamed on FaceBook when the American social network wanted to create Libra.

Who regulates bitcoin?

Currencies are generally regulated by central banks. For bitcoin, there is no great central authority to regulate money creation, everything is controlled in a decentralized way by the Blockchain, this technology that underpins cryptocurrencies. It is a network of storage nodes, on which users send information or transaction in the form of a block. Each node records and validates the block of information, which becomes inscribed in the blockchain and is deemed tamper-proof, the information being stored in all these multiple nodes. No central authority therefore comes to regulate, and guarantee, the currency.

Are there other cryptocurrencies?

Bitcoin is just one of the existing cryptocurrencies, based on one of the existing blockchains (called... Bitcoin, with a capital letter). Many others exist, but have never reached the notoriety and valuation of bitcoin. This is the case of ethereum, another well-known cryptoasset. "Stablecoins" are also cryptocurrencies whose particularity is to want to replicate a real currency. This is the case of Facebook's "libra" project, which consists of a stablecoin based on a basket of currencies.

What is Europe's position on cryptocurrencies?

The European Central Bank (ECB), like other central banks around the world, launched studies last October on the possibility of issuing a digital euro, in addition to the issuance of banknotes. This project is a direct response to the multiplication of private currencies and, in particular, to Facebook's project, and aims to ensure that the euro is not overwhelmed by these unregulated cryptoassets. This digital euro would be based on a blockchain, which would accelerate exchanges while ensuring their reliability. The ECB cites as an advantage the fact that, during a natural disaster, it can continue to operate. It is not a crypto-asset for all that, warns the ECB. Its digital euro would remain guaranteed and controlled by the central bank.