Bitcoin news for the week of 11/7/16

Welcome to our weekly recap of the latest headlines in bitcoin and fintech. This week, the U.S. Presidential election and the demonetization of large rupee bills in India drove bitcoin up both in value and as a popular topic online. These examples, plus more noteworthy news from China demonstrate that bitcoin represents an integral tool for stability and growth in economies around the world. Read about these headlines and more, in our weekly news recap!

Bitcoin as a safe haven

12 month currency growth chart, via TechCrunch
12 month currency growth chart, via TechCrunch

How bitcoin protects against geopolitical risk
In a TechCrunch article written by Blockchain CEO Peter Smith, he reflected about the certain impact the U.S. presidency will have on world economies. Smith shifts to a positive note where he points to bitcoin as an economic hedge, stating that bitcoin “has not only survived, but thrived despite increased hacks, competition, and scaling turmoil.”

As the U.S. elections came to a close with President-elect Donald Trump making a clear victory, the markets reacted by plunging into volatility. To no surprise, bitcoin became the currency of choice for many investors, traders, and speculators; there was roughly a three percent gain in just a few short hours. Perianne Boring, founder and president of the Chamber of Digital Commerce, reiterated sentiments similar to Smith explaining that, “market uncertainty and volatility typically leads investors to assets and currencies that aren’t directly tied to a government.”

Major events and bitcoin trends

"Buy bitcoin" is trending, image via CoinTelegraph
“Buy bitcoin” is trending, image via CoinTelegraph

Search For “Buy Bitcoin” Rising Shows Google Trend
When looking at Google Trends for “Buy Bitcoin” you can clearly see an uptrend worldwide over the past 12 months. Although it’s difficult to pinpoint exact reasons for trends like this, typically large scale events tend to influence the demand (buying, and selling bitcoin) and ultimately the price of bitcoin.

A big headline potentially causing a rush to bitcoin comes out of India, where the prime minister declared that large denominations of rupee bills would be demonetized as of November 8th. This decision drove a higher than normal demand in India for people to diversify into bitcoin. Bitcoin startup Purse.io also felt the impact, which they say is because the country is now the second biggest user of Purse.io’s ‘Bitcoin Amazon’ service.

New markets for bitcoin are getting noticed and companies are expanding to meet these demands. In the wake of increased interest in Japan and South Korea, Bitcoin exchange company Gemini, announced their expansion to serve the newfound demand in these regions.

Bitcoin continues to flourish in China

China Miners' Conference, via CoinDesk
China Miners’ Conference, via CoinDesk

China’s Bitcoin Miners See Profit in a Bigger-Block Blockchain
A recent mining conference hosted by Bitmain highlighted hot topics such as scaling bitcoin and the bitcoin block size. One speaker, Huang Shiliang, talked about how the bitcoin blockchain can be upgraded to handle more transactions.

In another headline for Bitmain this week, they also announced they are partners in a venture to build a massive 45-building solar powered data center in China. According to Bitmain co-CEO Jihan Wu, Bitmain will only own a minor part of the shared facility.

Credit: Naked Capitalism

Leave a Comment

Your email address will not be published. Required fields are marked *

*