Bitcoin by end of 2016 may be the most profitable asset for currency, stock indices and contracts for raw materials, follows from the data Bloomberg terminal.
January 18:41 GMT 16 Dec cryptocurrency has appreciated against the dollar by 79%, to $781, approaching the record highs of early 2014. The growth rate of bitcoin is four times higher than the growth of the ruble and the Brazilian real (18% YTD the evening of 16 December in both currencies), the two most profitable currencies, the Bank estimates this year. Futures on the S&P500 index and gold, also showed a less significant increase.
In early December, analysts at investment Bank Credit Suisse estimated the ruble as the preferred currency for investment in 2017. In his review of “the Conflict of generations” they called the ruble, “a currency with huge potential.” In November to invest in the ruble has recommended Deutsche Bank.
If, before the end of the year will not occur any events which may cause a collapse of bitcoin, at the end of the year it will be the most profitable asset. While bitcoin has not reached a historical record (of$1.14 thousand 3 Feb 2013) and did not break the mark of $800, from which the best performance of 2014.
The year of active growth
As explained by Bloomberg, in 2016, a series of events that provoked growth of demand for bitcoin and thus its course. First of all, the Agency said, due to the constraints on the movement of foreign currency in some countries, including China, where the population elected an unregulated cryptocurrency as an alternative to the dollar. Today China is the leader of the exchange’s bitcoin trading.
On 13 December the exchange rate of bitcoin on Chinese exchange OKCoin close to $789,2. The increase was driven by increased volatility in the local stock market: the concern of investors has caused the restrictions imposed on investments of insurance companies in Chinese securities. “Growing concerns about the pace of capital outflows from China and the weakening of the yuan to encourage investors to choose bitcoin as an alternative means of savings,” wrote the Financial Times.
The second reason is the protectionist policies of some States. Since elected to the presidency, Republican Donald trump promised to impose restrictions on money transfers from the U.S. to Mexico as long as its power will not consent to the erection of a wall on the border between the two countries, reminds Bloomberg. It also prompted people to start using cryptocurrency.
With the increase of the number using bitcoin is growing and the number of companies that accept bitcoin as a payment method, says Bloomberg. According to the publication CoinDesk, July—September, was open to more than 1.1 million e-wallets for bitcoins. Large companies, including IBM, Wal-Mart and mining BHP Billiton, test database, developed based on blockchain technology. Most of the leading global banks in the world are also experimenting with this technology. The interest in bitcoin has also been the head of Sberbank German Gref.
The growth rate of bitcoin was facilitated by the actions of some States to combat corruption and terrorist financing. In particular, India and Venezuela in November and December, respectively, withdrew from circulation the banknotes with the highest face value. India — in the fight against counterfeiters. Venezuela — to combat smuggling and capital, acquired criminal gangs. On 12 December, shortly after the news from Venezuela, but also against the background of accelerating inflation and weakening Bolivar experienced growth in value of bitcoin. The Chinese exchanges his course during the trading day reached $790, while the peak rate on Bitfinex was $785.
The Agency also notes a slowdown in the growth of bitcoins offers. At the end of last year, the co-founder of hedge Fund Global Advisors, specializing in investing in bitcoins, Daniel masters predicted that in 2016 the value of bitcoin in particular for this reason may exceed $1 million, and by the end of 2017 — grow more than tenfold, to $4.4 thousand.