The worlds most favorite online currency, bitcoin is deemed to reach unforeseen heights in terms of price gain. The popular cryptocurrency has been surpassing expectations recently as the weeks go by.
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After debuting in mid-October with $640, it stealthily went on to soar to a whopping $725. All this was possible despite a slight depreciation of a sluggish $690 over the weekend. Massive capital flow from the people’s republic of China has greatly contributed to this trend. Ever since June this year, demand for the currency in China grew almost tenfold regardless of strict capital controls imposed on their system. Their primary currency, yuan has been experiencing growth resistance while their foreign exchange reserves continue to plummet in unyielding ways. This, in turn, has led its people to consider buying foreign assets.
So, Bitcoin Casinos See Price To Reach New Heights Of $800?
USA Bitcoin casinos see that there are two reasons for this behavior with their capital outflows. The first one is thanks to the depreciating yuan, which has caused a mass shift in trading mentalities to people now embracing the bitcoin. This is partly a solution to prevent their assets from depreciating in value with the falling yuan. In this respect, the bitcoin has also solidified its position as the preferred choice for cross border investments and other transactions. The second reason is due to mainland exporters preferring to store their money in offshore accounts, as opposed to traditional banks.
Citigroup Global Market’s estimates portray over $ 573.2 billion in China’s 2016 capital outflow. Its half annual numbers, $286 billion, launched the unprecedented movement. Going by the numbers, it might be only a matter of time before the ever-growing bitcoin rises to a historical high of $800 by the end of 2016.
Citigroup’s Global Market & Goldman Sachs
A respected American conglomerate, Goldman Sachs, sent out a warning to China asserting that the country’s capital outflows are in the deeper end of the spectrum than perceived. Thanks to the yuan hitting a 6 year low, the Chinese government decided to seal major loopholes and tighten its capital controls. It might have been a delayed move as all manner and form of investors, corporate entities and citizens had already started flocking to the bitcoin. Despite consistent government efforts, the yuan has continued its downward spiral, only driving more people to the bitcoin.
So, what happens once underrated online cryptocurrency continues to gain strength? Indeed, it is more than arguable to predict! However, experts predict it will very soon reach and pass the $800 mark and position itself as one of the fastest-growing currencies in the world.