According to analysts, the uncertain outcome of the US election has largely caused increased interest from investors in the virtual currency Bitcon (BTC), which is the most widespread among cryptocurrencies in the digital currency market. During 5 November 2020, the exchange value of BTC against the US dollar (USD) exceeded US$15.000 per BTC. Currently, on Friday morning of 6 November at 6:52 AM CET, the BTC/USD currency pair was traded on the Coinbase digital currency market at the exchange rate of US$ 15.690 per BTC.
The investors’ interest in the BTC virtual currency and cryptocurrencies in general were supported by statements by renowned financial experts. On Wednesday 4 November Michael Novogratz, CEO and Chairman of Galaxy Digital said for CNBC’s Squawk Box: “People will buy Bitcoins because they fear that central banks will print too much money”. He also added that: “We are now at a time when central banks and finance ministries or the finance ministers are acting as one, and this is a really dangerous time, so people want to have hard assets. In the digital world Bitcoins are hard assets”.
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.
“Bit gold” 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 have been held all around the world on Bitcoin, economy, possibilities and implications of this currency. In September 2012, the non-profit company Bitcoin Foundation was established to take care of the Bitcoin infrastructure, monitor threats and possibly improve protocols, organize conferences and promote the currency. However given the decentralized nature of the network, the foundation has no special powers as the majority always makes decisions. In 2014, the Apache Software Foundation, a non-profit organization, began accepting donations in Bitcoins.