Topic: Why bitcoin prices rise in 2016? I think this is the cause. (Read 2340 times)

Wow, today pump of $30 in a hour was a surprise for me...

China fiat caused the pump? Wales buying 500.000 bitcoins?

Anyway, good for the holders

in the same manner mate maybe more investors got attracted because of this us elections results trumps bring some uptrend to bitcoin and chinese are playing with it and possible that india also given some part of it since they also looking for other source of profits so if more and more investors are coming and joining the ride the price are really hyping.

I also observed this stuff.  When Trump wins, the price of BTC goes up a bit then after a day or two BTC price started to go back where it was.  So I think trump somehow give some hype but only last for a day or two.  Chinese maybe plays some part in price increase but I don't think India has something to do with the BTC price increase.  Not that im saying India don't know about bitcoin but I think they are not big enough to push price of  BTC.

Trumps winning only increase the price a little bit during the election but then it drops back to normal price around 700++. I don't think the price rising is cause of Trump. Mostly because of India.

If India and China have more people start knowing about bitcoins and starts buying, bitcoin would go sky high not just to the moon, but to Jupiter. These two countries have the most population in the world. Just imagine every single person in those two country starts buying. USD1k can be the base.

      The main reason was the halving due to the dramatic reduction in the number of btc coins at least the initial period although after we had corrective trends. From then we have small fluctuations until  the reduction due to theft in Bitfinex and at the end of October a steady growth trend that I believe was reinforced by US elections after winning D.Trump and the ban of Indian banknotes Rs 500 and Rs1000 led to increased demand of btcs

Im thinking the same thing too on  which  this  new government  of  US will somehow help bitcoin to gro further  more  when  trump starts to do his duties. Hes a  businessman and for sure hes  open minded  enough to accept bitcoin  because   of its benefits and  its  potential. In this case  bitcoins adoptions would somehow fasten  because  on this thing  but no one  could able to tell what happen  on future.

   You are right, this are good reasons why price went up. And i`m sure that every of this reasons had some level of contribution. Some people made a lot of money here, some people earn now with bitcoin, that is what other people start to hear. And they are becoming more interested in this technology cause of earning.
   I think that is main reason why bitcoin is gaining popularity, and why are we here. Making profit, extra money, just hobby that brings money everyone have a reason, but in fact we all earn something here.

Yes possible! I am also expecting under new government that US investors will prefer to invest more into alternative investments than their usual investment vehicles like stocks and currencies. So, gold and bitcoin may find new highs in 2017.

Many financial experts predict weaker US dollars in coming days which must one the big supporting news for bitcoin price appreciations.

Honestly I think people are attracted to bitcoin not because of its blockchain technology.  I think they are attracted because of the high volatility of bitcoin that give them profit if they timed it right.  Yes, I can say it is the profit that attracts people.  The technology is just a bonus to them, but of course those large company may go after the technology but the question is what preventing them to create their own since they have all these genius programmers that is working for them, does it mean they are after the same profit this masses is after?

Blockchain technology is unique and originally invented to secure bitcoin transaction which attracted people trust to  invest on bitcoin for sure. It secure your bitcoin and provide faster transaction to anyone and everywhere with low fees, others just following blockchain technology. Of course blockchain affect the price when people trust it and decide to use the technology.

Certainly the reason mentioned by OP at the first page are some of the reason why bitcoin price increases in this year.   Brexit, halving, the chinese, the blockchain technology, this play a great role on hyping bitcoin and make people speculate thus making them buy Bitcoin to the point it push bitcoin price to the next level.  Among these in my opinion the greatest impact is the Chinese speculation, whether it is positive (price increase) or negative price decrease), somehow it brings impact to bitcoin price.

If the US presidential election contributed to the current price of bitcoin - which I doubt - once Trump assumes office early next year, btc price can only be expected to go higher than $700  - unlike previous trends where the price usually falls at the beginning of the year.

i think this simple
because early month in year 2016 bitcoin price is very low
and then is halving day, brexit and US election president
but nothing accident halving brexit and us election president, bitcoin price still rice because bitcoin price in early month in 2016 is very low price

there is a very good point about the block reward halving in the OP and it seems like everybody has forgotten that.

a couple of months ago before the halving everybody were talking about the supply and demand effect and how halving is going to affect all of that and the price of bitcoin but now that it has happened nobody is talking about it anymore but now is the time to talk about it because the effect is being felt now not before the halving!

Bitcoin price is really not depending on the halving for me im not that professional but i have my voice too to talk and spread out my feeling others says that bitcoin will be in to two and it will be so hard to get bitcoin from the mining and if the cause of the price is increase it because of the investors from the other countries.

Halving day only one factor to increase the price. I think the biggest factor is bitcoin and transactions users increasing in this year. But until last this year the price not reach $1000 maybe about $800.

The year 2016 is a notable year even if price haven't got increased due to the halving happened during the mid of the ongoing year. Another important thing is that acceptance among common people as well the increased adoption had led to the price increase. Also price increase didn't happen as most users expectations of $1000 and above. By the falling year we might experience $1000.

i am concern with brexit reward halving, technology Blockchain and Concerns China Condition.

in brexit, actually i don't follow the news, i only hear that people from europe is not believe with their fiat and they move their fiat into bitcoin and this is trigger the price of bitcoin increase and we have this experience.

in reward halving is like supply and demand in economic law and i am agree that supply is decrease and demand is increase and this can cause the price will be increase but not for fast increase. and if we see in the end of this year, many people will learn about bitcoin and they are really interesting with bitcoin.

in technology blockchain, honestly i don't know anything about this technology but i am sure and believe if one new technology can give more benefit for many people, then many company and government will adopt the technology and use that technology for human. its like if there is an easy way, why we are not use it.

in china condition, i only know that in china many company have big mining and the mining process i support by china and use it for trade or hold by them. i don't know if china prohibited bitcoin but when i see on huobi, there are a big number of bitcoin which is trade on that site and they can make the price is increase or decrease.

All above given reasons looking acceptable this year bitcoin growth is very promising it got so many investors and price is already moving into positive direction but I think that is just beginning and after some times it will be into more solid position, that is why I am also agreed with you. 

Simple hype and speculation will not get any commodity a sustaining price levels. A fake hype will get collapsed down over the night. Without actual reasons, no one will be able to speculate bitcoin prices. I strongly believe bitcoin has all the reasons for the prices right now it is having. For the rally on 2016, halving had played a very vital role in my opinion.

Yes we all know Trump highly controversial policies, perhaps the election of Trump could be a factor in the increase in bitcoin later. Many are predicting the election Trump will lead to instability of world markets. The instability of the world market would cause prices to rise bitcoin.

And recently when Trump got elected price get pumped for small amount of time which shows how people are speculating about future of bitcoin in america. Trump being president and announcing something to support use of bitcoin could make further pump in future.

You have listed most of the main events throughout 2016 and the world is getting increasingly unstable, so people are looking for alternative stores of value. I would say that decentralization and anonymity are two strong key factors that contribute heavily towards the increase in value. Just as tax authorities and governments are finding ways to find "black" money, Bitcoin is offering a way to transfer money over borders.

all of this may be true, the thing about speculation is that you can never say what affects the price 100% and what doesn't. i am sure all things you said here even the usage of blockchain technology by big industries has been helpful because all the things like this bring good publicity to bitcoin and that is always a good thing because it allows people see bitcoin as a legit currency not the way the media has been showing it for years.

that is also what i think.
these two events (brexit and election) are mostly overhyped and since the hype was not global it could only affect bitcoin price a little but an event like halving which was also overhyped and global pushed price to $780 and its real effect is now being seen.

Generally speaking there is more and more awareness of bitcoin every day. I would say that's an all-encompassing reason for the rise, that and the true value of bitcoin is here now that more people are investing more into it. A $12billion market cap is tiny in comparison of any other major currency.

Brexit - for bitcoin it was totally overhyped event, which caused bitcoin's price spike for couple days.
The truth is - unless we will have political event which will directly impact Bitcoin status/law/future it is not even worth mentioning.
Same as US Presidential Election which caused slight turbulence on stock markets - still not enough to bring real changes for BTC.

Brexit has had no effect on bitcoin.The vast majority of Brits are happy with the pound sterling and even happier that we are leaving the EU. There is no crisis in the UK - the economy continues to do well and unemployment continues to be low.

ussualy bitcoin price in every year, in early month in year price is low
and in end year bitcoin price can inracse up
in 2016 include situation about halving so bitcoin price can high incraese

The causes listed above are true and in addition to that, I'd say that generally worldwide, fiat is weakening and people are looking for a means to safeguard their assets from depreciation.

I agree.

I would also add that the US Presidential election played a very small part.
People being uncertain about the future of the stock market led to a slight increase in BTC purchase.

Now that Donald Trump won and the stock market seems to be doing okay,
price dropped a tiny bit as people realized the sky wasn't falling. (Yet)

Among all this things I think that China has the bigest influence. And it's generaly hard to say what are the things that actualy define the Bitcoin price and make it rise or fall. Usualy is the combination of many circumstances.

i do agree with what you mentioned above especially for reward halving indeed on the first halving date 2014 the effect is not too big because after reach the highest price on next year bitcoin price has been crash but for second halving there is big a impact for bitcoin because as you could see now the price looks stable and besides those above increased mass adoption also the main thing why bitcoin price increasing

things like this usually are not that effective in the bitcoin price so maybe you could associate $20-$50 of this rise to brexit!


soon?!! where did you copy this from? you should have looked at the  date, halving has happened and block reward has been 12.5 for a while.

but i agree with this reason and i think the biggest reason for the rise from before halving up until today is halving.


i doubt that when they talk about blockchain (not bitcoin) it has any effect on bitcoin price because as we know it is an alternative blockchain aka altcoin which is also going to be centralized too!


meh, is all i can say

Well this is true.
But as we know developing something censored, closed and permissioned will not be the big breakthrough in technology.
And this is the reason why Bitcoin will keep growing, in terms of usage, price and development.

To give op a quick answer.You're right there are multiple reasons for price rise of Bitcoin.
The reward halving could start to kick in now.And in a few more months we may see the real effect of less coins getting issued daily.
But I'm not so sure about the blockchain only stuff.It may cause another price movement when these big tech giants start to realize their own private blockchain developments aren't the big thing they hoped for and clients start having a look again on Bitcoin.Our devs are smart and do a hell of a job to bring us forward.

You are right about blockchain. They are mostly interested in developing their own proprietary systems based on bitcoin's blockchain design. Big players are not interested decentralized open-source systems they cannot control or at least have a say in.

Bitcoin is mainly driven by hype and speculation. In this regard, you can easily point out that the block halving and China are the most important reasons as to why the price has gone up significantly this year. Now the block halving has taken place already back in Juli, it's fully up to China again to drive the price to new highs. Not that I expect much to happen anymore this year, but the focus should be pointed at what will happen in 2017.

The Brexit and the blockchain technology are not contributing to the higher price. Especially when you consider that its not the blockchain from Bitcoin that certain industries are interested in. They are investing in, and researching the possibilities of having their own (centralised) version of the blockchain. This doesn't affect the price in any shape or form.

Here's what causes the bitcoin prices increased in 2016;

Brexit

Brexit a term of "Britain Exit", which will be held a referendum to determine whether Britain out of the European Union which now has consisted of 28 countries in Europe. Brexit campaign which wants Britain out of the EU will be opposed by campaign unmatchable, Bremain (Britain Remain), which wants Britain remains a member of the European Union. Arthur Hayes, CEO BitMEX and Tim Enneking, founder of investment institutions EAM stated that any geopolitical conflict in the world is always an impact on the price of bitcoin on the market. For example, when the collapse of the Greek economy and the tightening of Chinese monetary policy.

reward halving

Soon, rewards received by each miner will be reduced to 12.5 per block BTC. With the increase in demand and a decrease in the number of bitcoin supply, then it is very realistic if the price is soaring. Reward halving this will happen every four years. Rik Willard, founder Agentic Group LLC, stated that halving reward will have an impact similar to "stock split" will attract more people to invest in the stock.

technology Blockchain

Blockchain technology to attract a variety of industries to be applied in these sectors. The industry recognizes the potential benefits of blockchain for business processes leaner, cheaper, and faster. Even some of the consortium has been established to accelerate the development of this technology, such as R3 CEV and Hyperledger.

Concerns China Condition

Arthur Hayes predicts that the conditions of China became a major factor bitcoin price increases, with the devaluation of the Yuan by the Chinese central bank to be the trigger. This uncertainty triggered a high demand for bitcoin in the country, according to Joe Lee of Magnr.

That is the cause of bitcoin prices in 2016 increased. Do you all agree with that? Or there are other causes that make bitcoin prices rising? Let us discuss here.