Looking back on Bitcoin in 2016
The year 2016 was a great turning point for Bitcoin. Despite the fluctuation, the global market has been shaken by unexpected issues, for example, the commencement of Brexit and the Trump regime, which made prices soar. The on the 28th of December rose up to 965.52 dollars in 2016, which was double the price of the previous year.
The most concerning point for Bitcoin users and investors is whether it will become unstoppable in 2017 or not.
Looking back on Bitcoin in 2016
Bitcoin had a large fluctuation in price in 2016. Bitcoin has been quietly expanding since the global events occurred such as DAO, Bitfinex’s large hacking, Brexit and the US election, which caused the price to go up.
Obviously, investors are more interested in Bitcoin ever since blockchain awakened the world. According to CoinDesk’s data, market capitalization recorded the highest value of 15 billion dollars as of December 28th. The price of Bitcoin itself has reached its highest level since January 2014.
The main factor causing the price rise
Summarizing expert’s viewpoints from various Bitcoin’s source like CoinDesk, NewsBTC, etc., there are many opinions that predicted Bitcoin’s hike more than ever before.
Behind the late 2016 price rise, positive issues had been brought together such as blockchain enthusiasm worldwide, unstable matters in the economic market or spread of recognition of the virtual currency. Moreover, Chinese investors, who are concerned about the Chinese currency weakening in the largest Bitcoin country in the world, boosted it strongly.
Although Bitcoin has not reached the asset stability level of the likes of gold or the US dollar, Brexit and Trump’s victories led to Bitcoin’s price rise. Blockchain investment by government and global enterprises will be accelerating towards the future.
Aspired circumstances are in place for the increase in Bitcoin’s price.
The most optimistic expectation is surprisingly 35,000 USD
Let’s see the interesting “expert’s expectations”. The most bullish expectation is over 35,000 dollars by Mr. Ken Lo, CEO of ANX International, a blockchain Startup company from Hong Kong. Such a price increase makes reality diminish and even seems to be a personal desire.
Apart from the hopeful Lo CEO, Mr. Daniel Masters, who is a founder of Global Advisors Bitcoin Investment (GABI), the digital asset investment company in the Bailiwick of Jersey, expects the price to rise up to 4,400 dollars eventually, exceeding 1,100 dollars in 2017.
Mr. Vytautas Karalevičius, CEO of Spectro Finance Ltd, UK Cryptocurrency solution company, anticipates between 1,800 to 1,900 dollars. However, this is based on an optimistic premise- “rough estimate to accept various factors affecting the price” and “the case of Bitcoin’s growth is the same as PayPal within the half of this year.”
Modest expectations also stay below the net price
Let’s see a little more realistic forecast. Mr. Alan Donohoe, the founding member of the Irish Bitcoin Association, announced the forecast from 2016 to 2017 early this year to be 800 dollars. Compared with the current price, it can be said to be considerate.
Mr. Donohoe’s prediction is based on Bitcoin’s limited issue. Bitcoin has issued only 15 million coins at the moment, and it will be completed to around 21 million issues by 2040. It is impossible to reprint and increase the amount like a banknote, so the theory is that Bitcoin’s value will rise inevitably.
Bitcoin possessing war between governments
The writer took the opinion of Mr. Vinny Lingham, CEO of Civic as US cybersecurity company, personally.
Lingham CEO posted the “BT price forecast” in his own blog in May 2016. He has shown previous results like predicting temporary price falls. He expected over 1,000 dollars to be a turning point for Bitcoin in 2016 and 2017. He estimates it will reach 3,000 dollars in 2018.
The most interesting part of Lingham’s viewpoint is that the government in each country may possess Bitcoin as assets. Bitcoin holding war will occur and become a trigger of the price hike. Although there are still some doubts remaining like whether a “Bitcoin buying spree” by the Chinese government will happen or not, as Mr. Lingham’s example.
It is also interesting that he compares and predicts between the traditional inflation and Bitcoin’s inflation. CEO Lingham predicted Bitcoin’s inflation in 2016 as 6.4%, against the real economy inflation at 8.7%, while in 2017 it will be 5.3% in real economy inflation and 4% in Bitcoin inflation.
Around 1,000 USD is realistic
It is hard to reference when comparing all these fluctuation opinions. Overall, around 1,000 dollars is the most realistic price, but the Bitcoin price is easy to be affected by minor events.
The world situation is getting worse. The economic situation also seems to be loose as it causes avalanches, mainly in Europe and some developing countries.
Not only the negative factors overflowing the market but also the commencement of handling Bitcoin at a big retailer would make the price jump up in the blink of an eye. On the contrary, hacking incidents made reliability go down or forcing Bitcoin’s regulation will bring the price to plummet.
In CEO Lingham’s words, “we live in a probability world.” Unfortunately, it is impossible to accurately predict Bitcoin’s price changes with a crystal ball.