2016 was a very successful year for the Bitcoin share price. In addition to the fundamental arguments in favour of Bitcoin, Bitcoin’s price gains were supported by economic and political instability in the world. After all, Bitcoin fulfils the function of an escape currency, so that in political crises more and more people flee to state-independent crypto currencies such as Bitcoin.
The latest events that can be identified as driving the Bitcoin exchange rate are: the fall of the Chinese yuan, the failed referendum in Italy and high inflation in India and especially Venezuela. According to hedge fund manager Kyle Bass, the Chinese yuan is expected to fall further. He expects the Chinese national currency to lose up to 30 percent against the US dollar in the coming months.
We know from the past that major losses in the yuan have also led to a rise in the Bitcoin evolution exchange rate
The economic situation in Italy is also anything but stable. The failed referendum will make it difficult to implement the reforms demanded by the struggling banking sector. In addition to the banking crisis in Italy, there will also be a political crisis. The current problems in the EU are already giving rise to speculation that Italy could leave the EU. A withdrawal would, as with Brexit, endanger the stability of Europe and thus also of the euro, which in turn would lead to a strengthening of Bitcoin evolution.
Furthermore, the monetary problems in Venezuela and India are having a positive effect on Bitcoin evolution. Venezuela’s Bolivar is in free fall, so imports are hardly possible any more. To make matters worse, the Venezuelan government has removed the highest banknote, the 100 Bolivar note, from the market. The reason given is that the government wanted to strike a blow against the mafia because a large proportion of these banknotes are in the possession of organised crime. The IMF expects inflation in Venezuela to exceed 2000% next year, and it has already been observed that many
Venezuelans have fled to the digital currency Bitcoin evolution
Although the situation in India is not quite as dramatic as in Venezuela, it is anything but stable. India is also struggling with inflation, which has already been reflected in a significant decline in corporate profits and GDP. The interest of the Indian population in Bitcoin evolution has increased significantly in the course of the monetary policy problems: Bitcoin Evolution Review 2018 » Full Scam Check. This has led to the Bitcoin exchange rate in the Indian market rising to over 200 US dollars within a very short period of time.
As one can see from the chart, the Bitcoin price has been in a stable upward trend for several months now. Against the background of the countless political and economic problems, it can be assumed that it will not be long before the Bitcoin rate breaks the 800 US dollar barrier.