Bitcoin some analysts say is predicted to rise 165% to $2,000 in 2017 most assuredly driven by Trump’s ‘spending binge’ and also the dollar rally.
If this does actually happen, it’s going to be driven by expectations that President Donald Trump could introduce a massive economic stimulus policy in 2017. He is already talking about this, which is going to send inflation soaring sky-high, and it will make the US dollar rally even higher from current levels.
Right now bitcoin is trading at just over $700. If the price of bitcoin was to go to $2,000 that would be a 165% profit from current levels.
In his election campaign speech, Trump has been talking about an increase in fiscal spending. That will only increase national debt and triple the current budget deficit. If this did happen, what you would see is the economy growing, however it’s going to make inflation skyrocket. Not to mention the Federal Reserve would have to hike interest rates, at a much faster pace than previously thought. This would cause to US dollar to take off like a rocket and rally much higher than current levels seen.
Foreign investors love it when the US dollar rallies, and it causes more buying, especially in a rate rising environment. That has happened many times before in the past, and would be very good for bitcoin.
What people do not realise is that Bitcoin is one of the largest cryptocurrencies right now. It would benefit from such chaos. Other countries, would want to move away from the US and their monetary policies, and being tied to a specific banking system or regulation.
If countries like Russia, or China or parts of Europe were to move to Bitcoin as a partial payment system, and an alternative to the US dollar, we would easily see Bitcoin rally to $2000 and even go higher!
Bitcoin goes against the grain and is a simple solution to a low cost, no transaction fee method of payment. Suddenly it’s gaining more traction throughout the world, and you can now go to the shop and pay for a coffee with bitcoin payment. Each month, its being more globally accepted as a form of payment, and it might have a very big bright future ahead.
As you read this, there is a finite supply of about 21 million bitcoins. That in itself would be enough to cause bitcoin to appreciate in prices over the mid to longer term. So a bitcoin rise in price is very realistic.
In 2016 many cryptocurrencies are being more accepted. It’s similar to a new asset, that not many people know about or understand, and once this new asset grows, and improves with age it’s going to have a lot of long term potential.
We are now in the new age for digital currency with bitcoin. Once it’s more accepted and circulated more, that will only help its value to increase. The total amount of bitcoin in circulation right now is valued at 12.2 billion dollars, and that is only likely to increase in the coming years.
Copyright 2016 Economic News Articles