What is the BTC/EUR pair?
The BTC/EUR pair is a crypto-fiat currency pair with bitcoin as the base currency and Eurozone’s euro as the counter currency. Bitcoin is represented by the ticker BTC, while the euro is denoted by EUR. The EUR is one of the world’s major currencies and second most traded currency in the world, while Bitcoin is the world’s most famous cryptocurrency. The BTC/EUR pair represents the value of Bitcoin compared to the euro.
Bitcoin’s history begins with the release of the so-called ‘whitepaper’ in 2008 by Satoshi Nakamoto, a still unknown person or group of persons. It details a peer-to-peer electronic payment system.
The following year, in January 2009, Bitcoin was released. Bitcoin is a digital payment system, and is the first decentralised digital payment system in the world. It uses blockchain technology, in which new block – or piece of info – is created to signify a transaction. The system makes it possible to make transactions directly, without a middleman, hence the term ‘peer-to-peer’.
In May 2010, the cryptocurrency found its first real world use – paying for pizza! The first pizza bought with Bitcoin was sold for 10,000BTC or at the time approximate $25. This price was soon to rise, by the following year in February Bitcoin’s price was equal to 1BTC to $1.
April 2013 saw a price spike with Bitcoin valued at $250, by November this had already risen to $1200. That same month it was reported that Bitcoin moved more money internationally, than payment giant Western Union.
Despite security challenges, such as exchange hacks, the price and popularity of Bitcoin continued to climb reaching almost $20,000 in 2017, before taking a dive the following year to around the $8,000 – $9,000 mark (April 2018).
All about the euro
The euro is the official currency of the European Union (EU), it is used by 19 of the 28 European Union countries, known as the Eurozone. Symbolised by the sign €, the currency was introduced on 1 January 1999 under the management of the European Central Bank (ECB). However, it was not until three years later, in 2002, that the currencies banknotes and coins came into common use across Europe.
On 1 January 2002, an initial 12 EU countries adopted the euro, replacing their national currencies. These countries were: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
Today, a total of 19 EU member states hold the euro as their national currency, with the remainder, excluding the UK, committing to do so in the future. Additionally, a number of non-euro states have fixed their currencies to the value of the euro, these include the Danish krone, the Comorian franc, and the Moroccan dirham.
The euro is the second most traded currency, in terms of volume, after the USD, with the Eurozone’s economy ranked second globally.
What influences the BTC/EUR pair?
The BTC/EUR faces a number of factors of influence. Scandals such as the Mt. Gox hack in 2014, which resulted in an approximately $473 million loss, continue to affect the price of the cryptocurrency. New regulations, being developed across the world, will have an impact into the future of the cryptocurrency. Whilst new regulations bring tighter control they also offer more security and legitimacy for traders.
Meanwhile, the strength of the EUR is affected by political and economic events across Europe. News about migration, terrorism or unemployment could have a direct result on this pair. For interested BTC/EUR traders, it’s essential to keep an eye on releases by the European Central Bank (ECB), particularly regarding monetary policy and interest rates, which could drive EUR volatility.
Outsider factors such as institutional investors, those who process large volume transactions and an increased interest from Asia are also set to impact Bitcoin’s prices and influence this currency pair.
How can I trade BTC/EUR?
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