It is expected that the U.S president elect, Donald Trump could bring many changes in the Bitcoin industry. In fact, the cost of Bitcoin might be more
It is expected that the U.S president elect, Donald Trump could bring many changes in the Bitcoin industry. In fact, the cost of Bitcoin might be more than $2, 000 in the year 2017. According to the recent report by the Saxo bank, there is a likelihood that Mr. Donald Trump might bring in the policies of economic stimulus. This will not only propel the American dollar to be high but also send the soaring inflation.
Basing on the statistics by the coin-desk data, the trading of Bitcoin is approximately $754.51. If it will handle greater than $2,000, there will be an appreciation of 165%.
When it was the time for the united state’s campaign, the president elect said that there has been an increase in fiscal spending. Also, the saxo bank note commented that the cost of the rise could be approximately 20 trillion dollars of the united state’s national debt. Moreover, the current budget deficit would be tripled from about $600 billion to (1.2-1.8 trillion). Thus, there will be a rise of the United State’s economy by 6-10%.
The consequences of the saxo bank report will lead to the growth of the economy. This will sky rocket the inflation. Hence, it will force the United States federal to opt for high interest rates at a fast rate as well as resulting in the US Dollar to go up. Furthermore, the interest rates of the Federal Reserve may be on the rise. The dollar will then appreciate and bring the interest rates to be under control. The reason behind the appreciation of the dollar is due to the fact that it will be seen as a foreign investor’s attractive currency.
The Bitcoin will also benefit from these changes as the country will move away from being tied by the banking system and US monetary.
If sovereign countries such as China and Russia will accept the Bitcoin currency as a partial option of the US Dollar, Biction will triple for the next year that it from the current level of $700 to more than $2,100. The Bitcoin decentralization will also result in the inability of diluting the Bitcion’s infinite supply and the minimal to zero transaction cost. Thus, there will be more traction and it will be accepted globally.
The Bitcion’s realistic rise
The advocate of Bitcoin has said that there is a very slow appreciation of the US dollars as compared to the yuan. Furthermore, the handling of 2,000 dollars is unrealistic. In the last three months, Bitcoin has ascended to 20.7% while there has been a rise in the yuan by 3.3%.
The Bobby Lee, who is the chief exexectuve in the Bitcoin China has compared the advent of digital cameras and the cryptocurrencies and said that Bitcoin is a long term potential. Bobby told the there will be more circulation of Bitcoin in the years to come with the value of the Bitcoin circulation being 12.2 billion dollars.