The most widespread cryptocurrency, Bitcoin (BTC), which is the commonly-known virtual currency, is still keeping its exchange rate over US$5,000 for BTC. During Wednesday’s European trading morning on 17 April, 2019 at 10:21 CET, the currency pair BTC/USD traded on Coinbase Exchange (CBE) at US$5,216.21 for BTC with a daily BTC increase of + 0.43%.
Bitcoin is an innovative open-source P2P payment network and also the cryptocurrency used in this network. The main uniqueness of Bitcoin is its full decentralization; it is designed so that no one, not even the author or other individuals, groups or governments, can influence the currency, forge, seize accounts, control cash flows or cause inflation. There is no central point in the network, or anyone who can make decisions about the network. The final amount of bitcoins is known in advance and the release of bitcoins is defined in the source code of the network. There are minimal or no cost charges. The network has been operating since 2009 and it was created by a group of people using the name Satoshi Nakamoto.
Bitcoin was based on the concepts of “Bit gold” and “b-Money.” There is an official software for payments, which is being taken care of by volunteers from around the world, and several alternative clients. Since 2011, conferences all around the world have been held on Bitcoin, the economy, the possibilities and consequences of this currency. In September 2012, the non-profit Bitcoin Foundation was established to take care of Bitcoin infrastructure, track threats and eventually improve protocols, organize conferences and promote the currency. However, due to the decentralized nature of the network, the Foundation has no special powers, since the majority always makes decision. In 2014, the non-profit organization Apache Software Foundation began receiving donations in Bitcoins.
Currently analysts and cryptocurrency investment strategists are asking basic questions if the growth above US$5,000 will cease or will it continue to rise to the expected US$8,000. At the same time, these experts are trying to find the answer to a question as to what caused investors’ increased interest in virtual currencies, and in particular for the cryptocurrency Bitcoin. The economic rapporteurs say that, in times of uncertain US-China trade relations, coupled with higher USD volatility in the foreign exchange market, and investment gold’s high commodity market volatility, investors who are willing to take risks are looking for new alternative forms of profit increase.