The exchange rate of the most widespread virtual currency, Bitcoin (BTC) to the US dollar (USD), continues to grow after its price appreciation in mid-May of 2019. In the beginning of June 2019 the USD still holds its price US$7,800 per BTC. Analysts and market experts on the cryptocurrency market estimate for a more significant decline in virtual currencies and especially Bitcoin were not confirmed, and during the European trading morning on 6 June, 2019, at 7:18 CET, the currency pair BTC/USD traded at US$7,790.21 per BTC on Coinbase.
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 in the network. 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.
According to virtual currency market experts, it can be assumed that the trend of increased global financial market turmoil concerning the US trade relations with not only China, but also Mexico, Canada, Japan and, first of all, the European Union, will affect cryptocurrencies as well. This confirms the opinions of economic rapporteurs that the interest in cryptocurrencies may increase as investors are looking for new alternative forms of profit increase. However, the truth is that trading cryptocurrencies bears considerable risk with potentially fast profit but is also balanced with a possible very rapid and substantial loss, broker analysts state.