WOW! What a year 2016 has been for Bitcoin! Bitcoin value has shot up due to a number of factors this year. Looking back to the start of 2016, the value was about $420. This week the price soared to exceed $950. So what factors were involved in the price rise, and what does 2017 look like?
Essentially political and economical instability have all contributed. Individuals and, ever increasingly, institutions look at the leading cryptocurrency as a safe haven much in the same way as Gold and Silver. The price of Bullion will always raise in uncertain times and this has also happened this year. However, the price has gone up so high that Bitcoin looked undervalued. Money has now poured in, and the price has surged.
Causes for the Rise in Value
From Brexit and the unknown implications that will have on the UK economy to the US Presidential election. The recent Italian referendum result and other impending European elections in 2017, to the continued devaluation of the Chinese Yuan there have been multiple, and ongoing reasons for the increases in BitCoin value and causes for BitCoin investment.
A great attraction to this is clearly that there are a finite quantity of BitCoin available. How much quantitative easing have major governments used since 2008 to “print money” and pump it into their ailing economies? Recently there have been dramatic events in India. The government decided to demonetise up to 80% of all currency in circulation. Since this event there has been a HUGE surge in demand in the BitCoin market. BitCoin is seen as similar to Gold now. Every sign points that this trend will continue to grow into 2017. Many commentators are suggesting that the $1000 barrier will be broken early into the New Year. A figure of up to $3000 may be possible in the next 12 months.