Trump’s Election Win To Be A Boost For Bitcoin
There has been global concern along with macroeconomic concern ever since Donald Trump emerged as the prime candidate for the U.S. Presidential seat. This has lead to a major jump in the bitcoin transactions, according to recent reports.
Jupiter Research has found that the digital currency is very likely to have spikes in prices during the times of economic instability which would be experienced in the early days of Donald Trump’s reign after he takes over the Presidential seat.
Research author Windsor Holden stated in an interview that it was Trump’s “aggressive attitude” towards China and Mexico as well as his “bellicose statements towards Muslims” which have Holden and several other economists concerned. He also pointed out that Trump’s “hostility to free trade” could lead to the imposition of tariffs in future and also that his threats to ban Muslims from entering the US could backfire and also serve as a recruiting tool for Jihadists. According to ‘The Economist’s’ list published this year, Trump is one of the ‘Top 10 Global Risks’.
He continued that should all these come to pass, there will be a negative effect on a number of national economies including the United States itself. So expect a marked uplift in the volume of Bitcoin transactions as well as the value of Bitcoins once it becomes clear that Trump will indeed become the new US president.
Uncertainty in UK and China
The uncertainty surrounding Great Britain’s departure from the European Union as well as the decrease in the value of Yuan has also been seen as reasons for the increase in Bitcoin’s value and it becoming a hedge investment. These two, along with the decrease in the supply of Bitcoin due to Bitcoin’s new mining policy could lead to Bitcoin’s transactions to reach as high as $92 billion this year, which would be triple than what it was last year.
Other than the global instability caused as a result of socio-economic considerations, the Juniper report has also cited the increased adoption as another factor. Especially the reduced cost of processing, reduction in the fraud risk, and also the ease of the cross border transaction.