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Bitcoin has surged 75 percent in 2016 and has reached its highest levels since 2014 on Friday. .
Over the course of the year, bitcoin has surged 75 percent and has just reached its highest levels since 2014. On Friday, bitcoin was trading as high as USD$772.47 on Coinbase. The previous high was reached in June 18, 2016 at USD$758.99.
Bitcoin is a digital currency produced and held electronically. Aside from being digital, bitcoin’s most appealing characteristic is the fact that it is decentralized—banks or institutions are not in control of the bitcoin network, which is why it appeals during periods of political instability, inflation or insecurity. Just like gold, bitcoin is seen as a safe haven in turbulent times.
Rightly so, as Reuters wrote that Bitcoin could be enjoying gains since India’s cash crisis. On November 8, Prime Minister Narendra Modi announced a demonitization policy abolishing large notes. The move was said to be aimed at fighting corruption, tax evasion and terrorism. To ease public tension, India’s government increased the cap on cash withdrawals from bank accounts. The daily cap of 10,000 rupees was removed, the the weekly cap was increased to 24,000 rupees from 20,000.
Reuters said the demonitization policy seeks to bring billions of dollars’ worth of unaccounted cash into the mainstream economy, :as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.”
However, Fortune contributed that that the surging price of Bitcoin in 2016 is attributed to Chinese investors seeking higher returns, and that the digital currency could ramp up another 165% over the course of 2017.”
Cryptocoins News wrote that the most recent high on LocalBitcoins was 27,670,106 INR (approx. $402,940) for the week until November 26. The article also stated, “Interest in bitcoin among Indians has never been higher.”
Investors should note that as this case suggests, investing in bitcoin looks promising especially during turbulent times. If you’re asking yourself, “Why Should I Invest in Bitcoin?”, our previous article presents facts that may help you make that decision.
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Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.