The bitcoin is an example of a cryptocurrency[1]. Created after the 2009 financial crisis, it is the fruit of an idea formed by an IT engineer, or a group of engineers, known by the code name “Satoshi Nakamoto”. The bitcoin draws on a decentralised open-source software system for its functioning. When it was created, the objective of the bitcoin was to provide an alternative to traditional currencies for all holders with access to an internet connexion. The bitcoin was generated and circulates using blockchain technology which enables transactions to be validated without the intervention of a bank.

Each member of the community can approve a transaction by adding a block to the existing chain and thereby finding a unique identifier, or key, designed to name the new block.

The process involves resolving a mathematical equation which becomes increasingly complex as the chain grows. IT capacity requirements surge as the chain becomes more complex, with the quantity of energy required increasing exponentially. There are currently around 16.7 million bitcoins in circulation.

Its status as a decentralised open-source software means that the bitcoin is inevitably vulnerable. In terms of security, the current context is obviously an open invitation to bugs, pirating and the adoption of new versions. Moreover, its functioning seems somewhat opaque for holders, notably in terms of obtaining proof of bitcoin ownership or setting terms for buying and selling.

Decentralised open governance also implies operational risks. If the software breaks down or malfunctions, no one is really responsible for resolving the crisis. Nobody can legitimately act as the software arbitrator, while the developers managing the bitcoin blockchains appear to have more of a proven track record in computer coding than in risk management policy for financial market infrastructures.