There is still a lot of commotion regards crypto currencies, also thanks to recently published Facebook Inc. project to introduce its own digital pound currency Libra. This project has so far encountered a strong misunderstanding amongst central bankers, which is partly understandable, but also the resistance of business partners such as Visa Inc. or PayPal Inc. and others. In the meantime, however, investors’ interest in the crypto currency market has cooled off and the exchange value of these currencies, including the virtual Bitcoin (BTC), has declined.
Bitcoin Virtual Currency (BTC) has seen a recurrent decline against the US dollar (USD) when the exchange rate fell below US$ 10,000 per BTC in the last few weeks, with analysts initially estimating that this exchange rate will be an unbreakable one. However, due to circumstances related to the so far unsuccessful Libra project by Facebook Inc., the BTC exchange rate weakened against the USD and other currencies. As already mentioned this was caused by relatively negative response on the Libra project. On 15 November, 2019, at 10:06 am CET, the Coinbase digital currency market traded at US$ 8.718.04 per BTC with a daily gain of + 1.13%.
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.
Bitcoin 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 around the world have been held on Bitcoin, the economy, the possibilities and consequences of this currency. In September 2012, the Bitcoin Foundation, a non-profit organization, was established to take care of the Bitcoin infrastructure, monitor threats and eventually improve protocols, organize conferences, and promote currency. However, given the decentralized nature of the network, the Foundation does not have any special powers, as decisions are made by the majority. In 2014, the Apache Software Foundation, a non-profit organization, has begun receiving donations in Bitcoins.
According to financial strategists and analysts, the cryptocurrency market, and especially Bitcoin, is still one of the most attractive investment opportunities. Since the market for cryptocurrencies, including BTC, is not regulated by any financial officials, prices are based on current demand and supply, which is attracting still more and more investors. According to economic correspondents along with financial market analysts, it can be assumed that only time will tell how BTC and other cryptocurrencies will perform. In a very short time horizon, according to experts on the crypto currency market, cryptocurrencies can expect a stronger price growth, especially BTC. These experts also estimate that at the end of 2019 and the beginning of 2020, the BTC price can increase by 42%.