A well-known crypto investor, Nexo, has agreed to buy an undisclosed stake in Hulett Bancorp, which owns the little-known Summit National Bank. Through Summit National Bank, Nexo plans to offer a range of products including current accounts and loans backed by cryptocurrencies. Nexo’s banking license will bring enhanced legal guarantees to users and help to expand its presence in the US, the company has said. According to analysts, the majority of the funds provided will probably be in the virtual currency Bitcoin (BTC).
On 28 September 2022, at 7:47 am CET, the most traded cryptocurrency Bitcoin (BTC) was trading on the Coinbase digital currency market at US$ 18.788,14 per BTC with BTC down by -1.52% against the USD so far. This decrease in the exchange value affected not only BTC, but also other cryptocurrencies, including the second most widespread cryptocurrency Ethereum (ETH), when it traded at US$ 1.286,51 per ETH with ETH decreasing -2.78% against the USD. According to virtual currency market experts, this unregulated sector has also been affected by the very strong exchange value of the USD due to investor sentiment. At the time mentioned, according to the US Dollar Currency Index (DXY), which compares the value of the USD with the other six major world currencies, we saw the USD at a price level of 114.55 with a daily increase of + 0.39%.
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.