The digital currency Bitcoin had a wildly successful year in 2016. The annual high reached $794.39 on the Bitstamp Price Index as of December 19, and it appears that number could grow before the year’s end. The currency had been trading at $432 when 2016 began.
This news indicates that Bitcoin was a stronger option than any commodities, stocks, or foreign-exchange trade for the year. Bitcoinity.org reports that China alone traded 174.7 million Bitcoins in the month of November, and it’s being traded more in other countries throughout the world, especially India and Venezuela.
Bitcoin’s phenomenal success in 2016 is most likely related to a clampdown on fraud, an increased worldwide acceptance of the currency, and a slowing of supply growth. Additionally, Bitcoin exchange traded funds (ETFs) will help bring the currency into wider usage, as will global economic instability.
Tim Draper, a venture capitalist who is heavily involved in trading with the currency, told Bloomberg that “Bitcoin is coming into its own. There are starting to be consumer uses for it, and if people have any concerns about their own fiat currency -the rupee, for example -they flee to bitcoin as an alternate currency.”