A very bold Bitcoin prediction for 2017 has been made by Saxo Bank, a Danish Investment Bank specializing in online trading and investment.

Bitcoin Prediction 2017Bitcoin Prediction

Saxo Bank is a Danish investment bank specializing in online investments. It was founded as a brokerage firm in 1992, under the name Midas Fondsmæglerselskab. They bring together investment offers across online trading assets on a global basis.

A report from Saxo Bank claims Bitcoin could triple in value this year. The Bitcoin is currently trading at just below 1000 dollars having broken the $1000 barrier just before new year 2017.

This astounding prediction is founded on the known policies of President Elect, Donald Trump. It is expected that a fiscal spending binge by Donald Trump will accelerate US growth and that in turn will cause inflation to increase to the point where it is out of control. As inflation grips, the US dollar would devalue against other world currencies.

This is where you need to understand about Bitcoin. It is traded in a free market, totally unrestricted by any Government, Bank or individual. It exists as a virtual currency and is therefore attractive to investors from countries where economies are not performing. At the moment around 90% of all Bitcoin trading emanates from China. That is because the Chinese Government has introduced exchange controls making it difficult to convert yuan into other stronger currencies. Hyper inflation in Venezuela and measures to prevent money laundering in India have also actively fuelled the popularity of Bitcoin.

If, as Saxo Bank predict, the dollar becomes a less attractive investment for foreign investors it could have a crushing effect on other world currencies. The reason is people, globally will seek to invest in alternative forms of currency which are less restrictive. Bitcoin totally fits that profile and it could easily outstrip most other world currencies.

Conclusion

So the success of Bitcoin might be determined by the poor investment performance of some world currencies. Bitcoin prediction cannot be made without considering that.

Given that Bitcoin is easy to invest in without any Government regulation it is not difficult to see why Saxo Bank have made such a prediction. Also, Bitcoin is now seen by most as a secure investment. There were some security glitches in the past but most experts now conclude it is technically safe and secure option. The blockchains where Bitcoins are traded are mimicked on computers all over the world so it would be almost impossible for a hacker to penetrate the now proven mathematical security system.

The only thing that might cause a crash in Bitcoin is traders taking short gains if the market is volatile. However that could be exacerbated by increased private investment to such an extent that the value hikes strongly upwards. Bitcoin prediction is seen by many as being bright because it is now sufficiently established in the world market.

During 2016 we saw the value of Bitcoin double and that was not achieved by any other popular investment, including gold.

The UK Chancellor of the Exchequer, George Osbourne recently purchased Bitcoin to evaluate the use of this virtual currency. Could it be that some governments in the world might also invest in BItcoin as a means to strengthen their own economy. It that happened the Saxo Bank prediction might even be grossly understated.

Finally, the banks have been slow in accepting the concept of virtual currency. One wonders whether they might be too late as Bitcoin is already by far the leading virtual currency.

More and more organisations are taking to accepting Bitcoin payments so it may well become the preferred currency of the future. Many online casinos are now accepting Bitcoin as a payment method.

Update: During the first two weeks of June 2017 Bitcoin peaked at over $2900. The Saxo Bank bitcoin prediction might be born out, and we are only half way through the year.

Update: By August 2017 Bitcoin was trading at more than $3000. The peak value so far is $3130.

Read our other articles regarding the evolution of Bitcoin.

See live Bitcoin prices for the major currencies on our currency converter.

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Disclaimer: This article only represents the author’s opinion and should not be taken as investment advice.

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