Bitcoin's transaction value has increased drastically over the past year, mostly because of both political and economic instability we've been witnessing in the past few years, according to a new Juniper Research report.
Total value of the cryptocurrency's transactions is expected to hit $92 billion (£69.3bn) this year, up from less than $27 billion in 2015.
If you were hesitant on investing in the cryptocurrency, this new report, entitled The Future of Cryptocurrency - Deep Dive Data & Forecasting 2016-2021 should could give you the crucial nudge – it says chances are its value will go up, even more.
Firstly, the report explains why the currency has been successful in recent times, and it's mostly because of both political and economic turmoil. Brexit, the continuing weakening of the Chinese economy, as well as the reduction in money supply, has seen traders continually looking to find a 'safe haven' for their investments, and Bitcoin so far seems the perfect choice.
"Bitcoin’s price rose in the weeks leading up to the referendum, dipped briefly but sharply when it appeared that Britain would vote to remain in the EU, before recovering when the true result became apparent,” the report says.
But Bitcoin is yet to reach its peak, Juniper suggests, as we’re in for another bumpy political ride. If Donald Trump becomes president of the USA, it will shake global markets even more, with Bitcoin bound to profit.
“If Donald Trump becomes President of the US, there is the very real prospect of turmoil on world markets – the Economist Intelligence Unit ranks his Presidency within the Top 10 global risks,” research author Dr Windsor Holden said. “However, Bitcoin trading would thrive in such an environment, at least until the impact on major fiat currencies becomes clear.”
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