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.
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