Tribune. Two trillion dollars (approximately 1,670 billion euros): this is now the capitalization of all cryptocurrencies in April 2021. By way of comparison, this represents twice the value of all Parisian real estate , five times that of the company LVMH, which is the largest European capitalization, or… all the subprime loans which had caused one of the biggest financial crises in history.
While we must beware of any hasty extrapolation (the extent of the subprime crisis was largely caused by the securitization of debts), the figure is dizzying and illustrates the weight that virtual assets are taking in global finance. .
Institutionalization
Historically, the majority of cryptocurrency uses have been in Asia. However, the evolution of regulations and attitudes tends to think that a reversal is underway: the possession of cryptocurrencies is still tolerated in China, but exchanges are already prohibited there, while an institutionalization of bitcoin led by renowned influencers (Elon Musk, Jack Dorsey) and major financial players (JP Morgan, PayPal, Visa, Blackrock) is underway in the west.
The IPO of Coinbase, the second largest exchange platform in the world, for a value close to that of BNP Paribas, also marks the confidence of investors in the development of this market with the general public.
The possession of cryptocurrencies is still tolerated in China, but exchanges are already prohibited there, while an institutionalization of bitcoin is underway in the West.
Bitcoin is the dean and the undisputed king of virtual assets. Its value still represents nearly 60% of the total capitalization of the sector and the evolution of its price mainly guides the entire market. However, the IT infrastructure of its network remains predominantly Chinese: it is estimated that around 65% to 75% of the computing power resided there in 2020.
The vast majority of specialized servers to perform the operations that regulate the network (commonly called “mining”) are made in China, and the state applies export taxes of 25% on them. Electricity costs, which are the primary variable charge for “miners”, are also very competitive there. As the depreciation of equipment and energy represents 90% of the costs of manufacturers specializing in this less complex activity, the country retains a lasting competitive advantage.
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