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BizReport : Trends & Ideas archives : July 05, 2016

Brexit, Trump uncertainties to drive rise in Bitcoin transactions

Research into Bitcoin transactions by Juniper Research shows that the digital currency loves political and economic uncertainty and the total value transacted in 2016 is expected to increase $66 billion on last year.

by Helen Leggatt

The total value of Bitcoin transactions will exceed $92 billion this year, forecasts Juniper Research, up from less than $27 billion in 2015. Transaction volumes continued to be concentrated overwhelmingly on the exchanges. Bitcoin is now trading at values nearly 50% higher than at the beginning of 2016.

According to Juniper, this rise in transaction volumes is partly due to uncertainty over Brexit, the continued weakness of the Chinese economy and reduction in money supply.

Furthermore, Dr Windsor Holden, author if Juniper's report 'Will Bitcoin Bite Back?', says that concerns around Donald Trump attaining presidency in the US were also likely to result in further spikes in trading and Bitcoin value later this year.

"If Donald Trump becomes President of the US, there is the very real prospect of turmoil on world markets - the Economist Intelligence Unit ranks his Presidency within the Top 10 global risks," said Holden. "However, Bitcoin trading would thrive in such an environment, at least until the impact on major fiat currencies becomes clear."

Meanwhile, retailer adoption of Bitcoin has yet to pick up any pace and remains limited to a niche segment, says Juniper.

Tags: Bitcoin, cryptocurrency, digital currency, research

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