Bitcoin Value Set to Skyrocket in 2016


Experts claim -- with compelling reasoning -- that Bitcoin value could reach its 2013 highs again this year, and perhaps even surpass it.
Category: Ewallet News
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Bitcoin Value

2013 was a big year for bitcoin. A dramatic rush of awareness and surge in popularity worked wonders for the digital currency, propelling bitcoin value to more than $1,100. People who bought bitcoins way back in 2009 for 20 or 30 dollars now found themselves in possession of millions, seemingly overnight. Then, after the initial shock and excitement passed, the values dropped. They remained volatile, but tended to stagnate around 300 USD.

But now could be the time to buy into bitcoin while it’s still cheap.

ThePaypers.com reports that bitcoin’s biggest day could still be yet to come, thanks to a provision that was written into the fabric of the digital currency upon its inception. Bitcoin value could reach its 2013 highs again this year, and perhaps even surpass it, experts claim.

But why now?

Bitcoin’s founders and early enthusiasts set a finite amount of bitcoins to be created. That is why computers have to “mine” for them—they are creating coins from a limited stockpile. Currently, when a computer solves the very difficult mathematical equation required to earn bitcoins, that user receives 25 bitcoins. However, to keep inflation in check, the reward amount is halved every four years. The next halving is scheduled for July of this year.

This is why many experts are predicting digital currency values to skyrocket again this year. With a new level of scarcity, demand for bitcoins is likely to rise. And with demand, cost also rises. It’s very possible that this 4-year cycle (which could last another 125 years), will keep bitcoin values rising and dropping, somewhat maintaining the volatility that’s typical of the currency.

Predicting an Unpredictable Market

It’s easy to speculate about bitcoin value and when it will rise or fall—this latest prediction is no exception. Bitcoin’s value has been sporadic at best over the years, so it’s difficult to lay out facts and make accurate predictions about what the fledgling market will do. However, we can look at the last time the reward-halving occurred, which was in November 2012. Back then, bitcoins were worth about 12 dollars. The seven months following the event saw a value increase of 150%. While there was significantly less demand, it is safe to assume that another jump in value will occur in 2016. The only question remaining is: is this enough to launch bitcoin into the mainstream?
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