It seems that bitcoin is still somewhat mysterious to economists and market experts. Only recently it was possible to hear some predictions about how the entire cryptocurrency system is going to fail sooner or later. And on July 18th bitcoin peaked at $768, and experienced an increase of 55% in H1.
Of course, there are reasons why this happened to bitcoin. First and foremost, bitcoin experienced halving – a measure conducted approximately every four years that should prevent inflation of bitcoin. The latest one happened on July 9th and each bitcoin miner was rewarded 12.5 bitcoins for every verified block.
Read more about how to trade bitcoin and other cryptocurrencies.
The second thing that highly affected bitcoin was BREXIT and uncertainties that surround it. Recently, bitcoin lost some of the value due to halving but remained stable during the drop of GBP. Market analysts noted that bitcoin can be considered stable even in time of crisis. It is considered to be a reliable investment.
Also, Chris Beauchamp and Joshua Mahoney of IG Group revealed their predictions on bitcoin for H2. They noticed that cryptocurrencies are becoming increasingly popular, but the bitcoin is still the strongest one. Beauchamp and Mahoney also believe that movements of the GBP might increase the value of bitcoin that could reach $900, close to the highest rate ever ($1132 in December 2014).
Juniper Research, British consulting and analysis company, predicted that the number of bitcoin transactions will triple till the end of 2016. Other factors that might affect bitcoin’s growth are Chinese economy and Donald Trump. Bitcoin trading is most popular on Chinese exchanges and is more preferable than ever-changing yen. Also, the US presidential elections will have some influence as well:
“If Donald Trump becomes President of the US, there is the very real prospect of turmoil on world markets – the Economist Intelligence Unit ranks his Presidency within the Top 10 global risks. However, Bitcoin trading would thrive in such an environment, at least until the impact on major fiat currencies becomes clear.”
Blockchain Technology Takes Over Banking Systems
Bitcoin already proved itself as a trend maker in financial technologies thanks to blockchain technologies. Now, IBM is going to collaborate with Singapore government and create a special center for innovations that will research all possibilities for blockchain technologies.
The main goal of IBM Center for Innovation is to accelerate the entire process of implementing blockchain technologies in the financial sector.
“This is IBM’s first collaboration with the private sector and multiple government agencies within the same country to explore the use of Blockchain and cognitive technologies to improve business transactions across several different industries. Now with new cloud services that make these technologies more accessible, leaders from all industries are beginning to take note of the resulting profound and disruptive implications in a range of settings including finance, banking, IoT…”, explained IBM.
The Singapore government explained how this will be an opportunity for all financial companies operating in that country to take advantage of the latest technology trends, and increase their level of education regarding this important subject.