Bitcoin is making its way to the ears of investors every single day. There is considerable speculation that the cryptocurrency will rise in value exponentially over the course of 2016. Live Bitcoin News is here to tell you why the decentralized digital currency might spike in value and live up to visionaries expectations. Speculators believe the upcoming reward halving may help boost the price but that may not be the case. Here are some reasons other than the reward change that may affect the value of Bitcoin.
Investors Are Watching
According to seasoned investors, the price of Bitcoin will rise quite a bit over the next few years. The cryptocurrency has become a hot topic again as the price has jumped close to $600 USD in value over the past couple of weeks. According to the trading publication, The Street, Bitcoin will rally soon with other investments such as SolarCity and the Swiss Franc. Alongside the trading news outlets insights ARK Invest Research and Coinbase explain to investors that Bitcoin is a “new asset class.” The investment report called “Bitcoin: Ringing the Bell for a New Asset Class” gives investors a chance to study the attributes of Bitcoin as a new asset class with many graphs, references, and opinions to why.
On June 6th, the Gemini exchange founded by the infamous Winklevoss twins has expanded to Canadian borders. Since the inception of the exchange in New York during 2015, the platform has become quite popular. Alongside the Canadian expansion announcement the twins have told Reuters another international Gemini exchange will be announced in the coming weeks. With this support from the Winklevoss twins other investors are also telling the world, it’s time to invest in Bitcoin. The Digital Currency Group’s investment firm Grayscale a Bitcoin investment trust fund is doing just as well as the currency itself; if not better. Grayscale says via its website it is a “ bright future for currency.A bold opportunity to invest.” The trust GBTC is doing quite well for itself in the market world and has given larger investors a chance to hedge their assets into a new realm of investment.
Government Austerity Measures and Capital Controls
The global economy within traditional markets looks pretty bleak, and investors are looking for a new asset vehicle. The well-known challenges the country of China is facing has caused the whole world economy to shudder. Chinese stock markets and the yuan has seen tumultuous times and since the hardships began the value of Bitcoin has risen. There has been quite a bit of Bitcoin purchases within the borders of China and exchanges located in the region have seen exponential volumes. Interest in China’s mining operations has also peaked and just recently the mining company Canaan was sold for ¥3 Billion.
The publication Seeking Alpha reports China is just the beginning, as Egyptian markets have been volatile and the Egyptian pound is suffering through severe inflation. The author at Seeking Alpha says, “Interestingly, the government might further weaken the pound by making it easier for Egyptians to deposit dollars in bank accounts. That might make it easier for them to purchase bitcoin.” This type of currency problem is happening in Latin America as well, as hyperinflation has tarnished the Venezuelan Bolivar. Those are just three countries out of many faltering to stay afloat in this troubling economy and some of them just might play into the Bitcoin network.
Another reason people might get into the cryptocurrency is because of a report coming from the state of Oklahoma. The region’s Highway Patrol has recently purchased a bunch of Electronic Recovery and Access to Data machines (ERAD). The device finds prepaid cards and swipes the digital money from the cards, then deposits the funds into the authorities accounts. A lot of people say that Bitcoin is the answer to this violation of rights as officers are stealing money before the suspects even go to trial. The cryptocurrency cannot be swiped by ERADs and cryptocurrency proponents believe this is the perfect time for people using prepaid cards to switch to Bitcoin. Often people might not even be guilty of a crime, but yet civil asset forfeiture may not give the funds back even after a trial ends.
Interest in Bitcoin is Growing and the New Asset Class is Here
Bitcoin is trending and offering people a new way to control their money without a centralized entity, or sovereign authorities in the way. It’s becoming increasingly clear these government organizations and central banks don’t have the best interest at heart when it comes to citizens. Alongside totalitarian governments, the traditional assets of yesterday are becoming less reliable as a means to hedge against troubling economies. Bitcoin is the answer, Live Bitcoin News knows that, and we want our readers to know about it as well.
Source: SeekingAlpha, The Street, Grayscale, RT News, Wiki Commons, and Ark Invest
Images: Pixabay, and Shutterstock