Bitcoin exceeds $7,000. What?

Bitcoin (BTC) has recently surpassed 7,000 dollars per coin for the first time ever. Business Insider reported that the recent run has been helped by news that CME Group, the world's largest derivatives marketplace, plans to introduce Bitcoin future contracts in response to client demand.

   First of all. What is a Bitcoin? It is a worldwide cryptocurrency and digital payment system. As system it works without a central repository or single administrator, and it was invented by someone under the name Satoshi Nakamoto, back in 2009.

   The transactions using the Bitcoin take place between users directly without an intermediary. However, these transactions are verified by network nodes and recorded in a public distributed ledger (known as the "blockchain"). If you want to get a Bitcoin, you have to create it as a reward for a mining process. Is it official? No, it is illegal for the governments and the general market.

   According to research produced by Cambridge University, there were between 2.9 million and 5.8 million unique users using a cryptocurrency wallet in 2017. Compared with the 7 billion people on earth you can easily understand that it is not even close to the logic of becoming a currency dominator.

   After all, according to the Financial Times, there are more than 1.1 trillion euros in circulation, with 988 billion of them being deposited in banks. The remaining 112 billion euros are kept in treasuries in cash. At the same time, according to the DW network, people's wealth around the world is estimated at 155 trillion euros. Bitcoin cannot, therefore, replace traditional money, at least not as it stands today.

   In any case, why to use a coin like that? Even if there are relatively low fees during a transaction evolving BTC compared to official ways of commercially transferring money over the internet, the concept behind this is perhaps the governance of the world of money using fully digitalized systems rather than traditional methods. However, it seems that it is a well-performed bubble. Do you remember the one of Lehman Brothers with all those non-performing subprime and other low-rated mortgage loans?

   Unlike government issued money, Bitcoin is extremely unstable, and who knows what will happen if the market share that accepts it today suddenly refuses its existence. Who will ensure that your BTC has still value? Can you trust a digital currency? For instance, recently, it is estimated that about 280 million dollars was locked up thanks to one person's mistake. Is it the future of transactions?