Here’s Why the Value of Bitcoin Could Skyrocket in 2016

Bitcoin, the dominant digital currency that’s making its way onto the board room agendas of Fortune 500 companies and into the portfolios of average investors, is poised to have a big 2016.

Since emerging as a niche trading instrument in 2009, bitcoin has garnered significant media attention (more often than not, negative attention). While weathering a barrage of bad headlines, the bitcoin ecosystem has grown, attracting more than $1 billion in venture-capital funding over the last few years, supporting some entrepreneurs to build companies, services and capabilities that utilize bitcoin and the blockchain technology on which it’s built, and may transform the financial services landscape forever — and for better.

In contrast to fiat currency (like the U.S. dollar), bitcoin has no central authority, has a finite and known cap on its supply, and allows for near instantaneous value transfer. Against a backdrop of currency wars and manipulation, volatility in equity markets, and interest rate uncertainty, investors need diversification in their portfolios, and bitcoin may be the new asset that provides them with just that.

Bitcoin is still in its infancy, but that’s what makes investing in it promising. Over the last few years, what hasn’t killed bitcoin has made it stronger.

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Regulation? Now more of a friend to digital currency than its enemy. If bitcoin is going to fulfill its potential, it needs to do so within some regulatory framework and not in a black hole. The IRS has declared bitcoin to be property for tax purposes, the Commodity Futures Trading Commission has declared bitcoin to be a commodity, and regulation at the state level has emerged, offering investors similar protections when interfacing with other money service businesses. Adoption? Taking off in a meaningful way. Today, well north of 100,000 merchants and service providers accept bitcoin as a form of payment, and number of daily bitcoin transactions continues to trend higher.

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TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.