It's still too soon to make any reports, however we can say for sure the year 2016 has been extremely positive for bitcoin. Obviously there were some issues that could affect the cryptocurrency in a negative way, which were connected with unconfirmed transactions. Still it was caused with the increased activity and hence raising popularity of the cryptocurrency worldwide. And eventually things turned out to be positive when it comes to the Bitcoin price.
During the latest days the price reached $780 and is still traded within the limits. Some major political and economic factors could affect such a price growth, however the experts are sure some events affected the price growth in the most serious way:
• the predicted fall of Chinese yuan,
• the failure of Italian Constitutional Reforms referendum (the one that could lead to potential exit of Italy from EU),
• India's demonetisation drive followed by a similar decision taken by Venezuela.
Further drop of Chinese yuan may lead to further bitcoin price surge and eventually may have great impact on the cryptocurrency industry as a whole. Such a scenario has been predicted by Kyle Bass, the hedge fund manager who predicted the crisis of 2009. In Italy the banking sector is falling, banks have debts and potential exit of Italy from the EU means there's no safety for Euro any longer and as the result Italian banking authorities may turn to alternative assets, such as bitcoin. The same thing happens in India and Venezuela, where the tendency to move on to bitcoin is in action already.
Having made a "demonetization" move, India has already felt a drastic slowdown in the manufacturing and consumer sectors. Under the circumstances when businesses faced about 90 percent fall in earnings, many Indians demonstrated increased interest in bitcoin resulted in more than $200 increase in the cryptocurrency's price within the domestic market. Venezuela has all chances to repeat the Indian tendency.
Bitcoin is more than likely to continue the upward movement taking into account the above-mentioned factors plus the upcoming holiday season.
