Will 2017 Be Bitcoin’s Best Year?
Bitcoin is going to go up, not only to our own surprise, but to everyone’s. We say this because we have faith in Bitcoin, but the tremendous gains are evident of something greater happening. As the public becomes more informed of Bitcoin, people are purchasing more of it. It also represents a shift from centralized
Global Economic Efforts
Venezuela
“The government deliberately wastes our time,” grumbles Bianca Manrique, a doctor. – The Economist
Upon news of India’s “success” in eliminating (read: replacing) high denomination notes, Venezuela has decided to follow suit. This is primarily due to Venezuela currency (bolívar) loosing a tremendous amount of value due to rapid inflation. The announcement gave 72 hours notice before demonetizing their highest note, the 100 bolivar. Citizens rushed to deposit their notes in banks to lock in assets, while waiting for the government to issue new notes, up to 20,000 bolivar.
The Economist reports that this mistake is causing tremendous difficulties for citizens attempting to deposit their old currency in banks. Venezeula is not known to be the safest place, and those waiting in line are prone to robberies.
Uncertainty in China’s Economy
“The yuan remains weak after foreign reserves fell more than expected in November.” – Reuters
Fortune reports that China’s Yuan has dropped to an 8-year low. What does this have to do with Bitcoin? Simple, some Chinese investors see Bitcoin as a better store of value in contrast to the falling Yuan. The Yuan started this year at 6.505 CNY per USD and is currently approaching 6.95 CNY per USD. The struggling Yuan could be a sign of impending recession. We aren’t analysts, but many news sources are reporting mixed-signals from China on their economic forecast: Wall Street Journal, Reuters, Bloomberg, etc.
India
“Many are skeptical the scheme will achieve its original aim—eradicating the untaxed “black money” that fuels corruption.” – Fortune
India’s noble efforts are proving to add uncertainty to their economy as Prime Minister Modi continues his plans to demonetize the nation. These efforts have been met with criticism on their engagement, but also praise for their promises. Regardless, Bitcoin prices are reporting higher in India than the USA due to higher demand. This increased demand stems from citizen’s uncertainty about their country’s economic plans. Afterall, giving 48 hours notice to abandon a note, wouldn’t qualify as the best announcement.
Regulations Sweep Worldwide
Regulations, both positive, and negative have been enacted in 2016. Governments are starting to realize that cryptocurrency may be here to stay. BitLicense in New York has still turned out to be a failure of sorts. It doesn’t do anything that current Anti-Money Laundering Laws (AML) don’t. Also, BitLicense has had the impact of pushing many cryptocurrency businesses out due to the high cost of initiation. The high cost to become state-approved in New York is not all bad though. It encourages steady growth, rather than experimental businesses that could prove risky and tarnish Bitcoin’s building reputation.
Bitcoin Price Forecast 2017
Mainstream Attention is Constant
Mainstream media outlets give Bitcoin attention from time to time when new events surrounding it occur. Events such as the price climbing or falling steeply, new exchanges being created, old exchanges collapsing, high net worth figures usually in the tech or banking space creating new services or researching it further, are some of the event driven situations that generate media interest around Bitcoin. The price per Bitcoin unit has steadily increased all year round making its way back to previous all time highs in the 1000 neighborhood. Sharp price increases from the low 400s to near 1000 in a matter of a year give sources like WSJ and Forbes something to consistently post about Bitcoin.
Bitcoin Ecosystem Healthier than Ever
Bitcoin articles were initially all doom and gloom for 2016. According to 99Bitcoins.com, Bitcoin has died 118 times. Bitcoin’s third-party infrastructure has become increasingly reliable. Exchanges seem to be more trustworthy than ever, but still remain a hot target with hackers as Bitcoin prices escalate towards records.
Bitcoin is here to stay. Although we don’t think of it as a traditional investment, we believe it has the power to overthrow traditional ones. It’s the gold of the 21st century for the digital space. Check out our guides to the best crypto products and our review of crypto tax software.
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