Bitcoin Rallies During Presidential Election - page 2.

tee-rex

hero member

Activity: 742

Merit: 526

Quote from: yayayo on October 27, 2016, 10:17:28 AM

That's pure speculation. Another source attributed the recent Bitcoin rally to actions of the Chinese government that is apparently cracking down on certain investment opportunities.

The truth is that we can't really identify the reason for the recent rise in fiat valuation of Bitcoin beyond saying that there is increased buying activity. Causal attributions to real world events are impossible, because all date we have are purely correlative.

In my opinion the upcoming release of Bitcoin 13.1 featuring Segregated Witness qualifies equally well to be a reason for price appreciation. In the long term, Bitcoin will simply increase in value compared to fiat because fiat money unlike Bitcoin is subject to inflationary devaluation. So Bitcoin is an attractive hedge against inflation.

ya.ya.yo!

In my view, the recent price rise from around $610-620 that had been there for over two months up to today's $690 should rather be attributed to the effects of this summer reward halving that finally hit the market and tell on the Bitcoin price in full. If this is really so, and I hope it is, we may see a further rise in price as the Bitcoin supply is diminishing, and consequently being overwhelmed by the demand.

Pursuer

legendary

Activity: 1638

Merit: 1163

Where is my ring of blades...

I am interested to see if there is any concrete evidence about this claim, like for example what was the price like the last time an election happened? was it the same way with the same reasons?

besides I doubt that US presidential election has any significant effect on the price since bitcoin is not US money but instead a global currency which is not restricted to only one country and there are currently other countries like China that are using bitcoin a lot more than US people.

milewilda

legendary

Activity: 3094

Merit: 1127

Quote from: pooya87 on October 28, 2016, 01:09:12 AM

most of what you say are only guesswork and speculation. and all the changes to bitcoin price and relationship with US presidential election is mostly coincidence.
i agree that there might be some hype involved in this but that is not going to make this much volume especially in Chinese markets which are the starter of this rise and still have the most volume!

Its just pure speculations and there are really exact things that are happening as of now thats why bitcoin price still increasing as of now. Bitcoin rallies during presidential election is just nonsense though because it doesnt connect regarding on the demand of bitcoin. The true story here is that chinese do accumulate millions of bitcoin as ive read from the news which is really the main thing that affect bitcoins price as of now not to those tings that OP mentioned. IMHO

pooya87

legendary

Activity: 3472

Merit: 10611

most of what you say are only guesswork and speculation. and all the changes to bitcoin price and relationship with US presidential election is mostly coincidence.
i agree that there might be some hype involved in this but that is not going to make this much volume especially in Chinese markets which are the starter of this rise and still have the most volume!

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Maybe it is also because the Bitcoin mining rewards are also cut in half every 4 years. We had one this year and the first one happened on 2012. Both halvings created more demand for BTC and the direct effect is an increase in the price. That is the practical explanation that is the most plausible for me.

Milkduds

full member

Activity: 224

Merit: 100

Think it has more to do with the police force in the Philippines paying $100 per head of drug users. Wink

The election is a blip,not saying its a not big deal but the correlation is weak.
Bitcoin tends to do odd moves when you think it is connected to gold it goes the opposite. What we face is a little market manipulation and people start buying back in thinking they
can make a bit of dough off the next upward cycle. Its not a bad idea but bitcoin has the tendency to get a slight push and it starts to sail because we get all frantic about missing the boat.

sillug

full member

Activity: 211

Merit: 100

We can't identity the reason, and that's make that section so living Grin

! It also contributes to people buying bitcoins since all their phantasms are awakened.

yayayo

legendary

Activity: 1806

Merit: 1024

That's pure speculation. Another source attributed the recent Bitcoin rally to actions of the Chinese government that is apparently cracking down on certain investment opportunities.

The truth is that we can't really identify the reason for the recent rise in fiat valuation of Bitcoin beyond saying that there is increased buying activity. Causal attributions to real world events are impossible, because all date we have are purely correlative.

In my opinion the upcoming release of Bitcoin 13.1 featuring Segregated Witness qualifies equally well to be a reason for price appreciation. In the long term, Bitcoin will simply increase in value compared to fiat because fiat money unlike Bitcoin is subject to inflationary devaluation. So Bitcoin is an attractive hedge against inflation.

ya.ya.yo!

RealEstCoin

member

Activity: 110

Merit: 10

The Commercial Real Estate Coin

The price of Bitcoin has gone up about 5% since the beginning of this week. If you frequent social media sites, you will see posts and tweets campaigning for the glory that is #bitcoin. Although not quite to its peak of $800 earlier this year, Bitcoin is sitting comfortable around $665 today and is speculated to surpass the $800 mark at the beginning of 2017.

One reason that Bitcoin is surging could be because it is election time in the United States. Every four years when a president is elected, the U.S. economy tends to waver in certain industries. Finance is one of these industries. Voters tend to not trust the economic principles of candidates running for competing political parties. The potential scenario that a candidate from another party may become their new leader of their economy creates an uncertainty in the minds of many voters, who may lose confidence in the U.S. economy, even if it is for a short period during election time.

Gallup's U.S. Economic Confidence Index

Since the U.S. stock market is heavily regulated by the government, investors typically seek alternative investments to the stock market when a new president is elected. This creates a lucrative opportunity for Bitcoin's ecosystem because more dollars are exchanged into the market, thus increasing the market capitalization of BTC. Regardless of which candidate is elected, the uncertainty of the U.S. economy over the next few months correlates to higher pricing for Bitcoin.

Topic: Bitcoin Rallies During Presidential Election - page 2. (Read 1013 times)