2016 surge anticipated for Bitcoin
Bitcoin, a form of digital currency both created and held electronically, while pegged by many as the digital currency of the future is also thought to be too volatile an investment. However, it seems 2016 will be a good year for Bitcoin, largely due to slower growth in the money supply, and a supply-demand dilemma. Bitcoin’s price has almost doubled over the past three months, and it is heading for its best quarter in two years.
According to Daniel Masters, co-founder of a multi-million-dollar Bitcoin hedge fund, Global Advisors, the price of Bitcoin could reach $4,400 by the end of 2017. Masters cites various reasons for this, including an increased acceptance of Bitcoin payments, growing interest and investment in the technology that underpins Bitcoin transactions, and greater demand from China.
Bitcoin was designed to imitate a commodity by having a finite supply of 21 million 'coins'; a figure that will be reached in around 125 year' time, up from around 15 million today.