Bitcoin value to soar in 2016

【Abstract】In the past few years, Bitcoin has attracted multiple billion-dollar venture capital funds. With the support of Bitcoin and blockchain technology, many entrepreneurs have established companies, developed services, and enhanced their capabilities. In the future, the financial services industry is expected to be comprehensively transformed and continuously improved.

     Bitcoin has a huge influence, and now it is trying hard to target the world's top 500 companies and is fully prepared to welcome the arrival of a brand new year in 2016.

     Since its introduction as a market instrument in 2009, Bitcoin has garnered a lot of attention from the media (although most of it has been negative). Despite all the negative news, the Bitcoin industry has continued to grow. In the past few years, Bitcoin has attracted multiple billion-dollar venture capital funds. Several entrepreneurs have established companies, services, and capabilities with the support of Bitcoin and blockchain technology. In the future, the financial services industry is expected to be completely transformed and continuously improved.

     Compared with some legal currencies (such as the US dollar), Bitcoin has not been uniformly recognized by central institutions, and its development is limited to a certain extent, mainly serving some short-term businesses. Against the backdrop of currency wars, coupled with the volatility of the stock market and the uncertainty of interest rates, investors need to diversify their portfolios, and Bitcoin just meets their needs. Bitcoin is still in its early stages, but its development prospects are still relatively bright. As the saying goes, everything that doesn't break you makes you stronger.

     For digital currencies, regulations are more auxiliary than restrictive. If Bitcoin wants to develop better, it must follow the regulatory mechanism. The Internal Revenue Service (IRS) claims that Bitcoin is used for tax purposes, and the Commodity Futures Trading Commission (CFTC) claims that Bitcoin is equivalent to a commodity. The key to the development of Bitcoin is to gain widespread acceptance. Today, more than 100,000 merchants and service providers choose Bitcoin as a payment method, and the volume of Bitcoin transactions is growing day by day.

    Two years ago, many banks and securities firms opened internal working groups to better utilize Bitcoin. Of course, there are also skeptics and opponents who believe that decentralized currencies like Bitcoin are difficult to develop.

     In April 2015, banking giant Goldman Sachs and Boston-based Bitcoin company Circle launched a round of financing. Since then, the entire financial services industry - banks, securities firms, speculative investment groups, registered investment advisors, and asset management companies have more or less begun to touch Bitcoin.

     Why? Bitcoin is gradually penetrating into the electronic payment, e-commerce, remittance and overseas deposit industries, and even the gold market. The early batch of entrepreneurs who use Bitcoin and others have highlighted the important role that Bitcoin plays in small payments, not to mention asset management.

     As a result, more and more financial services companies are beginning to use Bitcoin, including Barclays, BBVA, Citigroup, UBS, USAA , and even Nasdaq, the New York Stock Exchange, and the Chicago Mercantile Exchange Group.

     Bitcoin is a perfect example of supply and demand. Supply and demand are like two ends of a lever. If the supply is known or foreseeable, we should pay close attention to the demand. Therefore, if Bitcoin continues to influence Fortune 500 companies and Wall Street investment bank trading departments, its demand will naturally increase, and its value will inevitably rise.