The Bitcoin could climb more than 165% in 2017

Virtual currency is currently trading about $ 755, according to data from CoinDesk. According to Sten Jackobsen, Saxo Bank Chief Economist, during the coming year could reach the $2,000 level. This would mean a rally of more than 165% next year.

During his election campaign, Trump has talked about an increase in fiscal spending. Analysis of Saxo Bank team’s report said this could increase the national debt of the United States up to 20 trillion and triple the current of approximately 600,000 million dollars budget deficit up to 1, 2-1, 8 trillion, or between 6% and 10% of the current economy of 18.6 billion dollars.

As a result, the economy will grow and inflation will soar, forcing the US Federal Reserve to raise rates of interest at a rate faster and make the US dollar “hit the Moon”. When inflation rises, the Federal Reserve can upload types to bring it under control. This will cause the dollar to appreciate because it would be seen as an attractive currency for foreign investors.

“This creates an effect domino in emerging markets and in China in particular, leading to people globally to seek alternative forms of the use of foreign exchange and payment systems not linked to central banks that have run out of monetary policies or Governments accomplices who are in complete financial repression mode or systems of transaction that are largely expected to a revolution” , wrote Steen Jakobsen.bitcoin-chart

In this environment, the Bitcoin would be the biggest beneficiary of this “chaos”, he added, as emerging market countries try to move away from “being tied” to monetary policy of United States and of the banking system.

“If the banking system, as well as how Russia and China move to accept Bitcoin as a partial alternative to the dollar and to the traditional banking system, then we could see Bitcoin easily triple their value during next year from 700 dollars to 2,100 dollars”, said the Saxo Bank Chief Economist.

lockchain is the technology underlying of bitcoin that records each transaction using the currency digital so that not can be manipulated. Also there is a supply finite of 21 million of bitcoins. This in theory would cause the appreciation of the price of the active during a long period of time.

Leave a Reply

Your email address will not be published. Required fields are marked *