The Expanding Market
The price of cryptocurrencies has been skyrocketing recently because several new countries are legitimizing digital currencies and weakening the regulations that surround them. Japan and the Philippines are the most recent countries to legalize the use of BTC and some of the leaders in industries such as retail are taking advantage of this by accepting cryptocurrency as a form of payment.
Since the biggest driver behind the price of a bitcoin is demand, every additional market that accepts it has a chance to cause the price to rise.
The Rise Of Cryptocurrencies in China
As the Chinese economy grows, so does the wealth of their people. This helps cryptocurrencies because over 75% of them are traded in China. This isn’t the only reason digital currencies are growing in China though.
The Chinese government has quite a few restrictions on their currency, which makes it difficult to exchange Renminbi for other currencies. BTC is being used as a way to bypass the restrictions. The growing demand of BTC in China is exactly the type of thing the currency needs in order to continue growth.
BTC Is Growing At A Faster Pace Than Other Currencies
BTC has grown at a quicker pace than any other form of currency. In fact, it has even grown quicker than gold and silver. Although safety is important, so is growth. BTC will always a much higher earning potential due to being decentralized and investing is always about making more money.
Another reason why BTC is growing faster than other currencies is because of the lack of restrictions against the currency. As mentioned above, the Chinese have been taking advantage of this since the creation of BTC. Other countries are beginning to as well.
BTC can be traded with any currency, regardless of location. Combine that with the fact that the trading of BTC results in much smaller fees than that of a normal currency exchange, and BTC has much more utility. Anything that has utility will always have demand.
More Demand Means Growing Price
The reasons lifted above all point to a future increase in demand for BTC. Since BTC is a decentralized currency with a limited supply, demand is the main indicator of price. BTC has the potential to greatly increase in price in 2017, making it one of the best investment options available.