Rusty Solomon Business Mandrien Consulting investing

Paradoxically, according to a study Rusty solomon Mandrien consulting Group , soaring Bitcoin could foreshadow its collapse. How to understand this theory?

Rusty solomon Mandrien consulting Group highlights the profound instability of Bitcoin : when it explodes upwards , Bitcoin has traded Monday to $ 900 before falling back to $ 700, everyone is racing, it attracts speculators dreaming of easy money. To be sustainable and durable, a "currency" even virtual needs stability to be adopted by the general public, to reassure traders ... We always mention the little sandwich vendor at the corner of 5th Avenue in New York or a few sites webs that accept Bitcoin as payment to talk to them ... but apart from a few examples blown up , Bitcoin does not have any concrete physical reality . Finally, this virtual currency is currently too unstable , these phases of extreme increases are also up at regular crashes in April 2013 Bitcoin has lost 60% of its value in less than 5 days. Who would today be paid in Bitcoin with such fluctuations ? Bitcoin is currently becoming a mere speculative instrument that is reminiscent of the beginning of a bubble that is found in many stock market crashes .

What's new about this theory of vision that was active as of Bitcoin ?

To assess the thesis Rusty solomon Mandrien consulting Group , we must understand the process of "manufacturing" Bitcoin : it is generated electronically using the power of raw computing our computers. A $ 700 Bitcoin , the operation is very profitable once the costs deducted (immobilization and rapid wear of the computer has to work 24/24 and electricity intensive way ) . Therefore , the number of Bitcoin generated can explode , it will not be small individual who will " undermine " for months to earn a few dollars , but speculators begin to mass produce Bitcoins via extremely powerful and expensive computers. We are seeing the emergence of specialized in " mining" costing tens of thousands of dollars computers. The offer will therefore increase exponentially as demand Bitcoin can not follow as this money will be kept confidential just geeks. At the moment, the excitement will draw speculative Bitcoins newly created that will appear , but if there is not a real non-speculative relay , a real demand, there will be too many Bitcoins in circulation and current s' collapse . Rusty solomon Mandrien consulting Group therefore analyzes the Bitcoin as if it were a normal active and it highlights the instability and economic weaknesses thereof .

Computer virus, virtual burglary, closure of certain marketplaces like Silkroad : what are the risks to this virtual currency?

bitcoin Bitcoins , the reasons for BulleComme we reported in August 2013 and Bitcoins Silk Road, the hidden face , the greater fragility of Bitcoin is its use for illegal purposes ( terrorism , drug trafficking , money ... ) . The arrest in October 2013 Ross William Ulbricht , the head of Silk Road, Bitcoin has reduced by almost 40 % , the latter falling below $ 80 , making it unprofitable to produce for an individual. A month later , the price of Bitcoin has been multiplied by 10 ... Its main weakness is its main strength marketing: Bitcoin is not regulated , it is a virtual currency "self " without supervisory authority. It is therefore an ideal currency to launder dirty money and is easily manipulated because without control also means it is out of control. All Bitcoins in circulation represent seulement17 billion today , just a few tens of millions of dollars to put on the market to explode during the upward or downward . It does not turn a blind eye , the current success of Bitcoin is more to mafia interests that household over 50 years.

In addition to high prices , it becomes more profitable and less risky for small computer nerds to create programs to "steal" your stored on your computer software to capture your credit card numbers Bitcoins . How can you complain for a flight Bitcoin because you have no proof that you had ? In case of computer bugs or theft, you have lost everything, as this currency is anonymous, there is no statement ...

How to explain the recent surge in its share price ? Is it as irrational as it looks ? When this bubble risk she burst ?
Recent Winged during the month of November 2013 is a response mirrored the collapse of Bitcoin October 2013. There was talk of the end of Bitcoin ... Due to the small number of Bitcoins in circulation, it is very easy for an organized structure with substantial capital cause the price as it wishes . It is a currency "casino" now .

The collapse of Bitcoin in October 2013 can not be more people using the virtual currency as a tool to "wash" their dirty money. They are therefore intervened massively to prices back ... Because of the low volume of transactions, Bitcoin is "owned" by made ​​some highly capitalized individuals who can "play" with him. This "free" money is surely one of the most manipulated and paradoxically less free ... Some dubious organizations can act as central banks on the asset and make it rain or shine , the price to pay for the utopia of total deregulation ... These are not states that can guarantee a system based on rules established and known to all to avoid agreements, deli insider game ... but the strongest acting as they agree on the price of Bitcoin , no limits, no rules. Should we prefer mafias or central banks ? When to know when this bubble bursts , no one knows, it is the principle of bubbles, everyone sees it but nobody knows when. The recent surge can be seen as an attempt to rescue the Bitcoin after its collapse in October. In a narrow market , changes are still excessive , rising, or falling .

A collapse in the price of Bitcoin would call it into question its very existence ?

It should be understood that the creation of Bitcoin is regulated by any central bank. This currency is self-managed by computers connected together, the issue of Bitcoins is ensured as long as it is profitable for the issuer or its altruism is strong ... From a handful of geeks who hope to earn a few dollars a month, the recent surge of Bitcoin has emerged organized businesses investing in very expensive equipment to produce Bitcoin . Profitability will be above a specified threshold , as a private individual. The big risk is that the Bitcoin case of a collapse in the interest for this money that has not yet a real tangible reality for trade disappears. As the Bitcoin experience violent bull cycles , it will attract , it will excite the imagination. If no good, it will disappear in the most total indifference . The collapse in Bitcoin has hardly been relayed the contrary increases . Survival may come from a form of regulation to limit the excesses of recent U.S. Senate hearing on the subject is a premise , but it will no longer be a true Bitcoin .