Bitcoin price prediction 2016

Bitcoin price prediction 2016

1)Bitcoin price prediction 2016 – The halving will decrease the supply of bitcoin, whole keeping the demand, so that would make bitcoin worth more.

But the halving will make mining profitability worse, meaning less miners, a higher trans. fee, and maybe causing a smaller demand.

For the second time since bitcoin was released into the wild, the bitcoin mining reward subsidy is scheduled to halve – around July 2016, from 25 BTC to 12.5 BTC per block. All things equal, this should result in some combination of smaller miners dropping out of the market, a rally in the bitcoin price, the curbing of mining difficulty increases, and greater interest from miners in allowing bitcoin transaction fees to rise.

Economics aside, the broader community would benefit the most from a rally in the bitcoin price, as the higher market cap would lead to additional liquidity, tighter trading spreads and lower volatility.

But has the halving been priced in during this three-month, 80% price rally?

2)Bitcoin price prediction 2016 – China

The yuan is trading at about 6.46 to the U.S. dollar, its lowest level since 2011. Also called the renminbi, the currency has lost 3.5% against the dollar this year.

It all started back in August, when China stunned markets by announcing a 2% devaluation — the biggest one-day fall in the yuan in more than two decades.

The slide has continued since, and further losses are likely — analysts say — following the International Monetary Fund’s decision to promote the yuan to its elite basket of global currencies from October next year.
That’s because China will face more pressure than ever to show its commitment to economic reforms, and further relax its grip on the yuan.

Mark Hart is Texas-based hedge fund manager. “As we explained simply, with Chinese capital controls increasingly more strict, the local population, which was nearly $25 trillion in deposits in local banks, will rush to transfer these massive amount of savings offshore, and will end up using bitcoin to do it.”

Bitcoin price prediction 2016
Bitcoin price prediction 2016

So with China devaluing currency and the Chinese citizens looking to get their money out of Yuan, do you think buying BTC will be one of their means for doing so?  China is pretending to stop capital flight. But only of non-members of the red barons families who work for jpm & goldmanS anyways. The target there are the ones that actually create wealth: the productive middle class. They should not afford to hedge their capital abroad – they are only allowed to flush their yuans down domestic real estate & stock market toilets and watch the bubbles pop.

3) Bitcoin price prediction 2016 -Financial instability of Countries similar to Cyprus

In Cyprus, citizens were robbed while they slept. It was business. Nothing personal.

The context here is if a very small country like Cyprus going under financially can cause over 600% of growth for the USD Bitcoin value, and no movement in the Precious Metals markets, what would the entire E.U. proving to Europeans that they are insolvent do for Bitcoin value going forward? If that isn’t a hint and a half that fiat currencies are on their last legs, nothing is. Government and private financial institutional arrogance, plus corruption, equals potential exponential growth for Bitcoin in the future. Why not let experience be my guide?

Bitcoin price prediction 2016 looks bullish with all the turmoil in economies around the world if Mark Hart is correct there could be a massive move to the upside. Testing $1000 doesn’t seem out of the realm of possibilities. 

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