Bitcoin Crosses $900 & Reaches 3 Year High

The drastic shifts in the global geopolitical scenario, following the assassination of the Russian Ambassador, Andrey Karlov, the recent Berlin attack and the conflict in Aleppo have shaken the very grounds of social stability.

No wonder this year, amongst other things, the global markets witnessed a radical shift as, defying previous speculations, Bitcoin rose to competition with the standard currencies and stock indexes. While, previously considered an unreliable form of currency exchange, in just this week it successfully claimed a 15 percent leap to $900.40, taking its annual gain to 107 percent.

Initiated in 2009, Bitcoin is the first of its kind cryptocurrency, working through a decentralized system that keeps it less susceptible to geopolitical changes. As cryptocurrency does not adhere much to federal monetary and regulatory principles and the transactions are monitored by miners, it is been considered as an acceptable alternative for buyers who seek to ensure their assets.

Hence, this sudden favoring of digital currency over flat money displays the prevalent mindset triggered by global instability. The unrest in Europe and the warfare in the Middle East has cautioned the global investors to take necessary precautions.

Moreover, the unnerving win by Donald Trump in the recent elections has intensified U.S pressure on the yuan, as they plan to induce a Tight Monetary Policy towards China once he gains control of the White House. Even the decline in gold prices has been connected to Trump’s win. In addition to this, his policies are targeted at depriving the foreign markets while focusing solely on internal interests, which has caused much concern in global economic quarters.    

Therefore, the demand for a safe haven in the capital markets has led many investors to believe that Bitcoin could be the key to safeguarding their interests in these turbulent times. Transactions monitored through cyberspace and a system that allows easy access to assets along with tax-free transfers is set to boost interests.

Research also shows that the Bitcoin is likely to gain popularity in 2017 pertaining to the increasing global tensions. Professionals at Juniper Research state that:

If the global market grows more turbulent in the months ahead (which is quite likely), people may start ditching their traditional currencies in favor of bitcoin. This will lead to increased use of bitcoin, and as more people use the currency, demand for it will rise, and prices along with it.”

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