Foreign media: Bitcoin will flourish in 2016

Bitcoin is targeting the world's top 500 companies and is fully prepared for the arrival of 2016. In the eyes of ordinary investors, as a speculative tool, is Bitcoin expected to soar in price in 2016? According to foreign media reports, Bitcoin seems to be expected to soar in 2016.

Bitcoin has attracted a great deal of media attention (often negative, of course) since it began to demonstrate strong commercial momentum in 2009. Despite the negative media coverage of Bitcoin, the Bitcoin ecosystem has continued to grow rapidly, attracting more than $1 billion in venture capital in the past few years, providing entrepreneurs in the Bitcoin industry with great opportunities to develop companies based on Bitcoin and blockchain technology, and the innovative services brought by these companies can even transform the traditional financial services industry.

Compared to legal tender (such as the US dollar), Bitcoin does not have a centralized institution, its issuance is limited, and it can achieve instant value transfer. In an environment of currency wars and currency manipulation, the stock market appears to be volatile and interest rates are unstable. Investors need a combination of investments to hedge against risks. As an emerging asset, Bitcoin may meet the needs of investors.

Bitcoin is still in its early stages, but this is the profitable stage. In the past few years, the media has predicted the death of Bitcoin many times, but Bitcoin still exists and has developed more mature and stable.

Regulation

Regulation is, to a large extent, a friend, not an enemy, to digital currencies. If Bitcoin is to realize its full potential, it needs to be managed within a regulatory framework, not left to its own devices. The IRS has declared Bitcoin to be property for tax purposes, the CFTC has declared Bitcoin to be a commodity, and some state regulators have provided similar protections to investors when dealing with other money service businesses.

Market acceptance

Bitcoin is growing rapidly. Currently, it is estimated that 100,000 merchants and service providers accept Bitcoin payments, and the number of daily Bitcoin transactions continues to increase.

Two years ago, many banks and securities companies set up internal working groups to study Bitcoin. There is no shortage of skeptics and deniers in society who firmly believe that a decentralized currency like Bitcoin cannot be supported by society.

Fast forward to April 2015, when banking giant Goldman Sachs led a new round of financing for Boston-based Bitcoin company Circle. The entire financial services industry, banking and securities firms, hedge funds, registered investment advisors, asset managers and custodians have all entered the Bitcoin space.

Why

Because Bitcoin can disrupt electronic payments, e-commerce, remittances, offshore deposits, and even the gold market. It is worth mentioning that the above is just the tip of the iceberg of Bitcoin's potential uses. Early Bitcoin supporters and entrepreneurs emphasized that Bitcoin can play an important role in the field of small payments, not to mention asset ownership registration.

That’s why financial services companies other than Goldman Sachs are jumping into the Bitcoin space, including Barclays, BBVA, Citigroup, UBS, USAA, and even Nasdaq, NYSE, and CME Group. Just as the Internet and its offshoots, such as email and e-commerce, made communication and commerce more efficient, Bitcoin has the potential to eliminate existing barriers within the financial system and bring new vitality to entire industries, companies, and business models.

Why now?

Bitcoin is a classic example of supply and demand. With a predictable supply, we must always pay attention to its supply. If Bitcoin can continue to influence the decisions of Fortune 500 companies, Wall Street banks, hedge funds and other financial institutions, then the demand for Bitcoin will increase significantly (and the value of Bitcoin will also increase).

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Original article: http://www.thestreet.com/story/13377731/1/here-s-why-the-value-of-bitcoin-could-skyrocket-in-2016.html
By Michael Sonnenshein
Translator: Wang Er
BTC address: 16enj2bapYdzPfa2DWSVaT1g95MCXg2hHt
Editor: printemps
Source (translation): Babbitt Information