After the election of Donald Trump and Brexit, many have expressed serious concern over the impact these recent events could possibly have on the economy. However, some experts predicted that the value of the Bitcoin would rise substantially once Trump assumes office. These predictions are already coming true a few weeks before the Trump inauguration.
Saxo Bank released an Outrageous Predictions report and stated that the expected spending binge by the Trump administration in 2017 will cause inflation and growth to increase rapidly. This will most likely cause the USD dollar to skyrocket and the Federal Reserve to speed up its hikes. Emerging markets like China and Russia may move away from the more conventional banking options as a result.
Bitcoin, which is the alternative virtual currency, has the potential to become incredibly valuable. The Saxo Bank researchers predicted that the value of the Bitcoin could triple by the end of 2017.
At the time of the report, the value of the Bitcoin was about $700. As of last Wednesday, the value of the Bitcoin has soared to about $950. This is the highest the value of the Bitcoin has been since November 2013, when a unit of Bitcoin was valued at $979. Now, the value of the Bitcoin has topped $1,000.
Undoubtedly, uncertainty about the future of the world economy after Brexit and the election of Trump has had a major impact on the value of the Bitcoin. However, it is important to keep in mind that the value of the Bitcoin simply reflects how much people perceive the currency to be worth. The rise in the value of the Bitcoin suggests that people believe that the value of the currency will only continue to rise in the future.