According to Julien Maldonato, Partner at Deloitte France, in charge of financial services, innovation and the Web3, cryptocurrencies should recover after the fall, because the underlying technology, the blockchain, is revolutionary. That’s the best thing about computer security, says the former mining engineer. Under the Pact Act, brokers governed by the status of PSAN (digital asset service provider), such as Coinhouse or more recently Binance, deal with the technical part (registration of new cryptocurrency holders in the chain of blogs) and offer their particular services. Some 2 million French people have already bought cryptocurrencies through them.
What is a cryptocurrency?
Before being an exchange currency, each cryptocurrency is the product of a blockchain. This technology is reinventing the entire Internet as we know it, with better storage capabilities and perfect traceability. In fact, it is a network of machines working together. The first blockchain, bitcoin, was created in 2009, and users were needed to make this network work. These machines needed a local currency, tokens, to attract people to play a role in network security. Because the larger the user community, the more the blockchain becomes an essential place for exchange or payment.
Limited offer. 2 months for 1 € without commitment
That’s how bitcoin was born. Gradually, users realized that these tokens allowed them to pay each other in an efficient, secure, and less expensive way. The bitcoin account unit then gained in value, bringing it from a few cents to more than $ 30,000 per witness.
In April and May, bitcoin lost more than a third of its value in a few days, and some other cryptocurrencies lost much more. Can they recover from such an accident?
The fall was quite systematic and global, many technology stocks also fell – I think PayPal lost 65%, Netflix fell 75% … This strong correction is linked to ratings that had risen too high and too fast , due to the monetary policies of the central bank and the excess liquidity that floods the financial markets. This excess was violently corrected. Bitcoin has suffered because it is also beginning to be used by mutual funds which, with the volumes they manage, end up having an influence on prices. In any case, this does not undermine confidence in the bitcoin system and especially in its underlying technique, the blockchain, which is the best in computer security. Bitcoin will rise again because its software continues to work and is indestructible. People continue to use this technology and this is what makes it valuable.
You are convinced that cryptography will revolutionize the world of savings. How?
That said, they seemed to serve as a local currency in the blockchain. But it is also possible, thanks to this technology, to create other tokens that can have many other uses. The underlying can be a real world object, such as a financial security, or a virtual world object. In the blockchain, we can create property titles for anything. The possibilities are endless. Let’s say we create a “stone” token: instead of putting a building into the shares of a real estate investment company (SCPI), we sell it using “stone-tokens”. In this way, the number of intermediaries is significantly reduced and, therefore, the costs associated with this type of investment, which are very high today (more than 10%). We can optimize distribution and management costs thanks to tokens and “tokenize” the sector makes it more accessible. This was done on a small scale in 2019: Equisafe, a digital investment company, made its first real estate sale with this technique. For now, this is still very marginal, because the technology is in the hands of start-ups that do not have the firepower to prevail in this conservative market. If this technology reduces costs, it is in fact the entire existing industry that loses profits …
The Express application
To keep track of analysis and decryption wherever you are
Download the application
It’s a bigger revolution than the Internet, you say?
Yes. “Tokenization” has made all underlying, and in particular financial products, much more liquid. It’s a bigger revolution than the Internet, because the blogging chain knows how to manage property, which the Internet doesn’t. With these new instruments, we no longer need the multitude of current intermediaries. It is more efficient and cheaper.
Chronicle of Nicolas Bouzou