Bitcoin has proven to be one of the most popular and widely used crypto currency since last decade. In previous couple of years, we have seen rapid swings in value of bitcoin. In early years, price went up and then fell to its lowest. But, in 2015, we started noticing a gradual increment in bitcoins value and acceptance. Many big names started accepting payments in bitcoins, many organizations launched their blockchain based products and many altcoins were introduced.
You must be wondering about the recent advancements in Bitcoin industry. Here is the crust of 2016 and some predictions for 2017.
What 2016 had for Bitcoin?
In 2014-2015, there was a steady growth in bitcoin value. It raised from $300 to $430. In 2016, it rose to $1000. As compared to 2015, the value of bitcoin was increased in 2016 but there was a downfall in the venture capital investment. The capital investment of bitcoin related companies fell from 500 million dollars to 350 million dollars.
Bitcoin acceptance also increased at a faster pace as china, the biggest restrictor of bitcoin, started accepting it. After this, bitcoin enjoyed wider acceptance and legitimacy in 2016. Before 2016, bitcoin’s image was plagued due to money laundering, drugs and fraud cases. But in early 2016, the increased security protocols almost eliminated these negative throwbacks and stabilized bitcoin economy. Bitcoin economy is maturing day by day because of the halving of bitcoin block reward. As compared to 2009, it has decreased a lot. It is set to decrease by 50% after every four years. The block reward value was 50BTC in 2009. In 2016, this reward value was around 12BTC. This halving controls the excessive supply of bitcoins. Higher demand pulls up the price.
What 2017 holds for Bitcoin?
It’s been just for 4 months since 2017 has started and the price of bitcoin raised from $1000 to $1800. Future speculations suggest the price will reach $2100 at year end. Many critics advice to refrain from bitcoin, calling it a bubble. Same happened in 2013 when price crashed from $1200 to $250 within few months. This time, bitcoin environment and influencing factors have changed a lot. Many merchants, businesses and consumers have adopted this currency as a valid payment method. Bitcoin mining network has also grown exponentially.
In 2013, what caused to crash the bitcoin economy was fraudulent payments, immature market and price manipulation. But, in 2017, the increased competition in between bitcoin and altcoins have eliminated any factor manipulating the prices or exploiting the liquidity of market.
Many altcoins like Ethereum, Litecoin and Ripple came to surface with remarkable features. This has given birth to a completely new age of digital currencies.
So, what you think is going to happen with Bitcoin in 2017? Many claim a double price at year end and many suggest it not more than a bubble. Personally, we see an increased demand and controlled supply of bitcoin which will result in increased price.