According to analysts, interest in cryptocurrencies has increased significantly. In this context, economic correspondents state that interest in cryptocurrencies is growing all over the world, in particular in India. According to a recent survey, a significant part of the Indian population has invested a notable amount of money in cryptocurrencies over the past six months despite regulatory hurdles.
The global interest in cryptocurrencies all over the world, including India, is largely oriented towards the cryptocurrency Bitcoin (BTC) – the most traded virtual currency with the highest market capitalization. On 2 September 2022, Bitcoin was trading on the Coinbase digital currency market at 7:31 am CET at US$ 20,103.75 per BTC with a +1.13% daily BTC gain against the USD so far. At the time mentioned, according to the US Dollar Currency Index (DXY), we saw the USD at a price level of 109.49 with a daily decrease of -0.18%. The global currency pair of the single European currency euro (EUR) and the US dollar (USD) traded on the international foreign exchange – Forex market at US$ 0.997 USD per EUR with the daily strengthening of the EUR by +0.30% against the USD.
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 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.
A special database that stores an ever-increasing number of data – called a blockchain – serves as bitcoin’s ledger. The online database is protected both against unauthorized outside interference and from the users themselves. The final amount of bitcoins is known in advance and their release into circulation is defined in its source code. A unique feature of bitcoin is its complete decentralization. It is designed so that no one, not even its author or other individuals, groups or governments, can influence, counterfeit, confiscate accounts, control cash flows or cause inflation. Bitcoin is completely independent of traditional currencies, its value depends on the confidence that it will be possible to pay with it in the future as it does today. The value of bitcoin is based purely on supply and demand on the market, in short-term sections the exchange rate is characterized by sharp price fluctuations.