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Bitcoin run could continue in the face of World Economic Troubles - Alldamoney

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Bitcoin run could continue in the face of World Economic Troubles


Having more than doubled its value this year, Bitcoin is within a touching distance of its all-time high despite regular hack attacks on virtual currency exchanges in which coins have been stolen.
A single coin only worth around $435 at the start of 2016, but by the end of the year its value has climbed steadily to a three-year high of $977.8 (£791.3)  increasing  the total value of all bitcoins in circulation to surpass over $14bn.


Last year’s Bitcoin exceptional performance was driven by various factors, including the troubled world economy represented by fiat chaos in India  (Indian efforts to control 'black money' is prompted more interest in bitcoins), Venezuela, and the Chinese slowing economy that saw depreciating Yuan.
Traditionally dominated by trade in the bitcoin-US dollar currency pair, the bitcoin markets was taken over by volume from bitcoin-yuan trading. The bitcoin-yuan trade surpassed bitcoin-dollar volumes at the end of December 2013 so therefore the more bitcoin’s price rose, the more cryptocurrency and renminbi changed hands.


The increased activity in cryptocurrency emanated by the continuation of capital outflow from China which saw its foreign-exchange reserves in 2016 shrink by almost 8% to $3.05 trillion. The drop in reserves has occurred as China’s currency the yuan, weakened by 6% against the dollar in 2016.
The majority of Bitcoin currency trading takes place in China as it allows people to skirt restrictive local laws that limit how much money Chinese people can swap.
Reiterated by Nicolas Cary, co-founder of Blockchain  “The price performance of Bitcoin has closely tracked some macroeconomic trends including the dramatic fall in the value of the British Pound, Argentine Peso and Venezuelan Bolivar. At Blockchain, we have seen very strong growth the past quarter across our entire platform but especially on the wallet side.
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Why the Bitcoin run could continue


The bitcoin Bull Run could continue as some of its boosters are hoping. As market watchers expect a decision on the possible approval of a bitcoin exchange-traded fund or ETF is one major event on the horizon next year. By the second quarter of this year, two funds (one of them operated by the Winklevoss twins of “The Social Network” infamy) could be approved by the US Securities and Exchange Commission. If the listing is successful ETF would make bitcoin easier to trade and help increase demand for the underlying asset. “bitcoin would  be bought through an existing brokerage by people,”
The Core question of bitcoin’s future price direction is whether a booms or busts impacts on the decision to adopt the currency.
There’s a widespread consensus that the current boom is good for the technology Within the bitcoin industry, because it’s been more measured and less intense, unlike the frenzied bidding up of its price in 2013.

As GBMiners director Goswami put it recently, “I think this is a price rise coming purely out of natural demand for bitcoin as a safe store of value,” “This is a huge indicator of mass trust in bitcoin, I don’t find anything unhealthy about the present causes for this price rise.” he said.

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