2017: The Year of Cryptocurrencies

02.01.2017 • Tech

Selva Freigedo – Port Phillip Insider Extra (AUS) –

Brexit, Donald Trump, high debt, China’s yuan devaluation, the war on cash, European banks…you name it. All these 2016 events have pushed Bitcoin higher.

If you are not familiar with Bitcoin, it’s one of around 700 existing digital currencies. A digital currency, or cryptocurrency, is a currency created and transacted only in digital form.

As of writing (22 December), a single Bitcoin is worth US$822.86, almost double what it was this time last year (US$435.50). For the first time in almost three years, it is once again trading above the US$800 mark.

Take a look at the following graph; it shows the value of Bitcoin since it started trading in 2010:

The last time Bitcoin was trading at these levels was January 2014. You see, from 2013–14, Bitcoin multiplied its value almost 10 times due to Cypriot bank bail-ins and a surge in demand from the Chinese. Another major banking crisis — for instance, the demise of Italian bank Monte dei Paschi — could see the Bitcoin price surge upwards again.

This year, prices have rallied upwards on fears of Brexit — that’s right, the currency increased in anticipation that Brexit may happen — the election of Donald Trump as US president, and the uncertainty surrounding Monte dei Paschi. The truth is that Bitcoin thrives on crises and uncertainty.

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