Market capitalization of cryptocurrencies exceeds USD$ 3 trillion

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The recent increased interest in cryptocurrency trading and the consequent strengthening of their exchange values, have led to a significant increase in market capitalization, which reached just over US$ 3 trillion at the end of last week on the digital currency market. However, most countries with developed economies are beginning to prepare laws that would impose an obligation on cryptocurrency owners to pay taxes on these financial assets in the same way as on other financial assets.

On 16 November 2021, at 8:22 am CET, the most tradable virtual currency, Bitcoin (BTC), traded on the Coinbase digital currency market at USD$ 60,735.68 per BTC with the current daily decrease of BTC by -5.01% against the USD. Another major cryptocurrency, Etherum (ETH), was trading – at that time mentioned – on the Coinbase digital cryptocurrency market at US$ 4,326.95 per ETH, with a daily ETH decline of -5.24% against the USD. On that day, according to the US Dollar Currency Index (DXY), we saw the USD at a price level of 95.48, with the daily strengthening of the USD exchange rate by +0.08%. This strengthening was subsequently fully reflected in Forex trades with the single European currency, the euro (EUR). On 16 November at 9:39 am CET this global currency pair EUR/USD traded at a mutual exchange rate already below USD$ 1.14 from EUR, more precisely USD$ 1.1373 per EUR.

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.

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