Bitcoin value has seen a significant growth in the past few months. Earlier last month the value of bitcoin reached $500. The digital currency has been stronger since then. Currently the price is hovering around $350 to $370. The increasing price trend is expected to continue into next year as well. It is forested that the value of bitcoin will soar in 2016, thanks to the interested it has garnered from the fintech and Fortune 500 companies.
Bitcoin has had its share of good and bad moments. Some of these moments are responsible for the digital currency to become popular. Recently, Bitcoin was the target of bad press soon after the Paris terrorist attacks. The governments of European Union nations jumped into action with calls for regulation of the decentralized cryptocurrency.
The technology behind blockchain is being explored by large banks and financial institutions. Going by the pace of development, we can expect some of these institutions to implement the technology by the end of 2016. In addition, Bitcoin startups are being looked at favorably by the investment community. All these things play a very important role in enabling Bitcoin gain a strong foothold in the world economy.
Some of the other indicators of bitcoin’s increasing role in global economy includes the recent discussion about inclusion of bitcoin into the international reserves of Barbados. The European Court of Justice in its recent ruling exempted bitcoin exchanges from VAT, which is similar to the exemptions enjoyed by forex. Introduction of Bitcoin regulations will also help in legitimizing the digital currency. However, if the regulatory approach is not thought through it might do more harm than good.
Over all, we can expect bitcoin to emerge as a stronger alternative currency in the near future, which will in turn have a positive effect on its value too.