|
The year of 2016 has certainly been both good and bad for the world’s most well known cryptocurrency - the bitcoin. Even though it had its up and downs, today bitcoin costs roughly $700, which is 2,600 dirhams. Let's take a look at how the price of BTC was developing in the best and try to make some possible forecast for the near future.
Shall we measure the price of BTC in AED or USD?
One important thing to mention before we move on any further. If you haven’t heard, AED (a currency code for United Arab Emirates Dirham) is pegged to US Dollar. Hence, all of the changes in the dollar rate will be reflected nearly instantly. Take a look at the five-year chart of USD/AED below taken from XE to understand that there is nearly no fluctuations between these two currencies.
Hence, an obvious conclusion that we should make here is that BTC/AED rate will be quite similar to BTC/USD rate, as long as the peg remains intact. This is why below we are going to use BTC/USD, also one of the main reasons for doing this is that the information on BTC/USD rates is much more accessible.
Past performance
Bitcoins only exist for less than a decade. Initially, they were nearly worthless, yet with a proper support from the community and an enormous boost from the media, bitcoins have recently climbed over the mark of $1000 per one coin in late 2013 / early 2014, and since then the trend seemed like a downward one. However, as of 2015 the price of the bitcoin seems to raise gradually. Over the course of 2015 there were a few very positive things that happened to the bitcoin. First of all, the governments of the major jurisdiction has decided to avoid the banning of this cryptocurrency. These governmental bodies set on identifying the best fit of the BTCs as a financial asset class. So far the opinions from different governments still seem to be contradicting each other.
Fluctuations
Even though the bitcoin’s price can change very drastically throughout the day, there are quite some people that still prefer to keep their savings in the bitcoins. Next to this, there are even companies that make their core model powered by the bitcoins.
One of such company examples would be some bitcoin casinos. Similar to regular betting places, bitcoin casinos also have bonuses, all types of possible games and so on. However, the main difference between a regular gambling and gambling with the bitcoins is that instead of just using BTCs as a mean of payments, players are actually required to bet and receive payouts only in one currency - bitcoins. This way it possible to avoid any potential losses coming in from the FX fees. This is especially true for the players that can allocate a certain part of their balance on the expenses that could be settled in the bitcoin.
Nevertheless, the bitcoin seems to be very volatile and this could be the main reason for its popularity among the day traders.
Future predictions
Bitcoin seem to get on the positive trend. It is quite hard to predict until when it will last, yet we should definitely watch $1000 per coin price, as this will have a great impact on the crowd and crowd psychology. Once this happens, it is possible to expect the bitcoin to raise even more, yet there is still a chance of seeing the previous year's events appearing against, just because the bitcoin was overpriced.
|
New
Review
Abu Dhabi International Airport - 41°F
