Cryptocurrencies especially Bitcoin have strengthened


In recent days the price of gold on the commodity market has risen significantly – including the cryptocurrency market – where the exchange rates of virtual currencies, especially Bitcoin cryptocurrencies, have strengthened. This was a result of investors’ concerns regarding the tensions between the US and Iran in the Middle East. Recent incidents in Iraq between Iran and the US, the killing of an Iranian general by the Americans and the subsequent retaliation by Iranians against a US military base, resulted in the price raise of gold, oil and cryptocurrencies.

On 8 January, 2020, about thirty minutes before noon, the Bitcoin virtual currency (BTC) had already risen above US$ 8,000 per BTC. Bitcoin (BTC) kept its exchange rate above this value in the Coinbase cryptocurrency market and at 11:34 am CET traded at US$ 8,350.00 per BTC with a daily growth of +0.08%. The value of the US dollar on the foreign exchange market at that date and time also showed an upward trend, and according to the US Dollar Currency Index (DXY) recorded a daily increase of +0,08 and was at the 97.08 price level.

Bitcoin is an internet open-source P2P payment network and also the cryptocurrency 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 also no central point in the network. 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 was created by a group of people known as Satoshi Nakamoto. “Bit gold” and “b-Money” are the basis for Bitcoin. There is now an official software client for payments, taken care of by volunteers from around the world, and several alternative clients. Since 2011 the conferences have taken place all around the world regarding Bitcoin, its possibilities and consequences.

In September 2012, the Bitcoin Foundation, a non-profit company, 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 the majority always decides. In 2014, the Apache Software Foundation, a non-profit organization, began receiving donations in Bitcoins. According to financial strategists and analysts, the cryptocurrency market, and especially Bitcoin (BTC), is still one of the most attractive investment opportunities.