Current developments in the virtual digital currency market have seen a significant increase in the exchange value of the world’s most widely used virtual currency, the cryptocurrency Bitcoin (BTC). During the 47th week of 2020 the exchange value of BTC against the US dollar (USD) exceeded US$ 17.000 per BTC, which is a new record maximum from 7 January 2018. On 17 November 2020, in just 24 hours, the price of Bitcoin increased by more than 4 percent of its previous value.
Bitcoin is an internet open-source P2P payment network and also the crypto currency used in this network. Bitcoin’s main uniqueness is its full decentralization; it is designed so that no one, including the author or other individuals, groups or governments, can influence the currency, falsify, confiscate accounts, control cash flows or cause inflation. There is no central point in the network, and no one can make decisions. The final amount of bitcoins is known in advance and the release of bitcoins into circulation is defined in the network source code. There are minimal or no cost payments. The network has been operating since 2009 and it was created by a group of people known as Satoshi Nakamoto.
According to cryptocurrency analysts Bitcoin is the only medium of exchange that can offset central banks printing money. “Bit gold” and “b-Money” concepts were the basis for the creation of Bitcoin. There is now an official software client for payments, managed by volunteers from around the world and several alternative clients. Since 2011 conferences have been held all around the world on Bitcoin, economy, possibilities and implications of this currency. In September 2012, the non-profit company Bitcoin Foundation was established to take care of the Bitcoin infrastructure, monitor threats and possibly improve protocols, organize conferences and promote the currency. However given the decentralized nature of the network, the foundation has no special powers as the majority always makes decisions. In 2014, the Apache Software Foundation, a non-profit organization, began accepting donations in Bitcoins.
On 18 November at 9:04 am CET, the exchange rate of the BTC/USD currency pair on Coinbase was US$ 18.144.50 per BTC, with the daily strengthening of the BTC by +2,024% against USD. Experts say this year’s significant increase in the exchange value of BTC is due to a number of factors, including incentives and investor interest, such as Stanley Druckenmiller, related to the ongoing global pandemic. According to economic correspondents this rise of BTC also occurs, among other things, as various big companies make their moves on the digital cryptocurrency market.