Millionaires have been made from bitcoin over the last few years. Although bitcoin is hot on the lips of the average investor and the price of bitcoin has shot up to $800 in 2016, is now the time to get involved with bitcoin, or is this thing just inflated and ready to drop like a rock, and leave investors in the gutter?
This ponders a few interesting questions. Especially with the USA in so much debt. People are now relying on digital currencies more and more and even paying for things such as goods and coffee in the shops using their bitcoin or bitcoin cards.
Just this week, bitcoin hit a major milestone, where the price shot up to the $800 dollar mark. It actually traded as high as $815 and some astute investors really think bitcoin is bound to go much higher in the months ahead. Especially after Trump takes over the Whitehouse.
Charles Hayter, who is the founder of a digital currency website which compares these digital currencies, was today quoted as saying this is a “definite psychological barrier”.
Bitcoin investors are really now just flocking to some of these currencies, because they do not know where to go, and are looking for some sort of safe haven, in the coming years. There is so much turmoil going on right now, with the election of Trump, terrorist activities, banking problems, and irregularities, investors are looking for places that are solid and that are working right now. Areas which are much more self-reliant and self-sufficient.
Bitcoin has been steadily rising in recent months, which has been bolstered by investors looking for safe havens following some of the drastic political shifts in our current world economy. One must be warned that Bitcoin itself is a very volatile asset, but in turn, not correlated with other global markets, which is making it a useful place to invest and find solace when other assets are failing and falling in value.
There are a number of contributing factors that have cause this rocket ship rally, but this includes the global economic and political shifts underway with (President-elect Donald) Trump and the Eurozone with Bitcoin becoming a favoured digital hedge and flight to safety.
In 2016, the Chinese trading is another significant factor or reason for bitcoin being above the $800 mark. Trading volumes in 2016 all over China have been "extraordinary", according to Hayter, with 10 million bitcoins now traded on days in October through to December and November. This has now subsided to a steady pace of about 3.5 million bitcoins a day, which is still quite amazing.
2016 has really been a great year to be a bitcoin investor. Anyone who bought the cryptocurrency at the start of the year, would be glistening in profits, because they would have seen their investment grow around 87 percent. So the future for bitcoin longer term, might be good, but short term very volatile.