Bitcoin exceeds expectation – valued at over $800 dollars before end of the year

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Bitcoin saw its fair share of ups and down in 2016. But the best part of it is seeing its price nearly double before the end of 2016.

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The advent of cryptocurrency ushered the financial world to a new era of online commerce. While there exist a number of cryptocurrencies on the world-wide-web, Bitcoin is clearly the most famous. In recent weeks, Bitcoin has been going strong against the dollar and the currency’s value has hit the $800 mark.

In mid-October, the currency was priced at $640. A month later the currency was priced at $700 and despite it falling to $690, it is highly expected that at the end of 2016 the currency will be priced at $800. There are several reasons that have led experts to project Bitcoin’s surge. Some of the main factors that have contributed to Bitcoin’s increased price are:

China’s Cash Outflow

The main reason put forth by experts as to explain the unpredicted upsurge of Bitcoin is increased demand for the cryptocurrency in the Chinese market. In recent times, the Asian economic powerhouse has experienced increased outflow of capital. The capital outflow has been attributed to the weakening of the Chinese yuan. It is expected that more people are buying Bitcoins in a bid to protect their assets from the Yuan’s depreciation. This has led to increased demand for the cryptocurrency and in turn increased its value.

Bullish Markets

A stable and bullish online trading market has also been blamed for the recent upsurge in Bitcoin’s pricing. According to experts the market has enjoyed a lengthy period of stability. This increased stability has seen the cryptocurrency enjoy a good performance against other major currencies. Some experts assert that the entry of big financial players such as Wall Street will contribute greatly to the upsurge in Bitcoin’s pricing. In this regard, if the market retains its stability the cryptocurrency could be priced at $5000 in the next five or so years.

Political Dynamics

Bitcoin is regarded as a safe-haven investment instrument similar to gold. In this regard, the cryptocurrency is not affected by macroeconomic conditions in the same way as forex trading for example. Therefore, the demand for Bitcoins has also been fuelled by political dynamics such as Britain’s exit from the European Union or the Trump victory. In this regard, many investors have turned to safe-haven investment instruments as a measure of protecting themselves from the Brexit fall-out. Thus, although the value of the cryptocurrency decreased in the aftermath of Brexit, the currency became stable again. Other political dynamics are also to blame for the cryptocurrency’s increased value and pricing.

The cryptocurrency market has been on a steady upward trajectory over the past few years. However, it is yet to gain worldwide approval as not all countries use cryptocurrencies. The demand for cryptocurrencies has been restricted to China, Europe, and the US. However, experts project that the growth of the cryptocurrency market will improve the pricing of the cryptocurrency. Also, the development of the Bitcoin technology will increase its demand.

In conclusion, investing in Bitcoins is still a viable investment option. However, the cryptocurrency market is still susceptible to market changes.