LONDON 2016 could prove to be the year that the price of bitcoin surges again.Not because of any dark-web drug-dealing or Russian ponzi scheme, but for an altogether less sensational reason - slower growth in the money supply.Bitcoin is a web-based "cryptocurrency" used to move money around quickly and anonymously with no need for a central authority.But despite being championed by some as the digital money of the future, it is often dismissed as a currency that is too volatile to invest in.The reason 2016 looks set to be different is that bitcoin's price is likely to be driven in large part by similar factors to a traditional fiat currency, following the age-old principles of supply and demand.Instead of being controlled by a central bank, bitcoin relies on so-called "mining" computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes.In return, the first to solve the puzzle and thereby clear the transactions is currently rewarded with 25 new bitcoins, worth around $11,000 BTC=BTSP.

But when it was invented in 2008 by the mysterious "Satoshi Nakamoto", who has yet to be identified, the bitcoin program was designed so that the reward would be halved roughly every four years, in order to keep a lid on inflation.The next time that is due to happen is July 2016.Bitcoin was also designed to emulate a commodity by having a finite supply of 21 million bitcoins, which will be reached in around 125 years, up from around 15 million today.Hence, also, the use of the term "mining".Daniel Masters, co-founder of Jersey-based Global Advisors' multi-million dollar bitcoin hedge fund, started his career as an oil trader at Shell in the mid-1980s and spent 30 years trading commodities before crossing over to bitcoin.Now he reckons the price of bitcoin could test its 2013 highs of above $1,100 next year and then pick up speed to rise to $4,400 by the end of 2017.That would be due to a number of factors, Masters said, including an increased acceptance of payments in bitcoin by big companies and authorities, rapidly growing interest and investment in the "blockchain" technology that underpins bitcoin transactions, and also more demand from China as its currency weakens and the economy slows.

But taken in isolation, the halving of the mining reward will increase the price of bitcoin by around 50 percent from where it is now, Masters reckons.That is despite the fact that the halving of the reward has always been inevitable - a factor that would already have been accounted for in pretty much every other market."If OPEC (Organization of the Petroleum Exporting Countries)came out tomorrow and said, 'in six months' time we're going to halve oil production', the oil price would instantaneously react.But the bitcoin market is still in its infancy, and I don't think that factor is discounted into the price fully," he said.Bitcoin's price has already almost doubled in the last three months, putting it on track for its best quarter in two years.It hit $500 last month for the first time since August last year, with Chinese demand for a pyramid scheme set up by a Russian fraudster cited as a reason for the price surge.But Bobby Lee, the chief executive of one of the leading bitcoin exchanges in China, BTCC, reckons there is scope for the cryptocurrency to go much further.

He thinks the price could increase by as much as eight times in the time up to the reward halving, taking it as high as $3,500 by next summer.armory without bitcoin core"Today the worth of bitcoin is $1 per capita in the world (population)," Lee said, referring to the value of all the bitcoins in circulation, around $6.5 billion.bitcoin hesapları"For such an innovative, decentralized digital asset, I say 'boy, are we undervaluing it'.bitcoin news bitstampBut it takes a while for people to realize that."Theboutique bitcoin parismining reward has already been halved once before, in November 2012, from 50 to 25 bitcoins.ethereum ico review

The stakes were much lower then, with one bitcoin worth around $12, but nevertheless the price increased by about 150 percent in the preceding seven months - roughly the time left before the next halving.bitcoin address to hex"It (the halving) dampens supply so, all other things being equal, that puts upwards pressure on price," said Jeremy Millar, partner at London-based financial technology specialists Magister Advisors, who expects demand to continue to increase."Noone can argue with that fundamental economic principle."(Editing by Greg Mahlich)Bitmaintech Antminer S9 13.5TH/s, Bitcoin Miner List-ID: Shop Safely Tip: Beware of the other party claiming to be overseas.Only agree with a payment method you're familiar with.Report Ad Price RM 6 200 Location Kuala Lumpur - Jalan Ipoh Condition New View more info Company AIRKAYU TRADING Seller has 4 other adsYou may have heard success stories like the one about a man who bought $27 in bitcoin in 2009 and then found his investment to be worth almost $900,000 a few years later.But bitcoin’s value doesn’t always go up.

Imagine if you bought a thousand bitcoins in late 2013 — when the cryptocurrency was worth more than $1,100 a pop — and then watched its value plummet below $200 in just over a year.It’s tough to predict exactly how much bitcoin will be worth in the future.But you may find success if you’re a savvy student of bitcoin’s price history.Let’s explore how bitcoin has grown over the years and where it might be headed.One US dollar (USD) is currently worth 0.000897 bitcoins (XBT).Inversely, 1 XBT is worth 1,586 USD.It’s difficult to know what bitcoin will be worth even a week from now, much less further into the future.To have a shot at predicting the price of bitcoin, you need deep knowledge of how the cryptocurrency is traded among institutional investors.And a finger on the pulse of world events.If you want to make a long-term bet on bitcoin, however, you have an important piece of information to back you up.Bitcoin is different from fiat currency in one important regard — governments control fiat currencies, and there is no limit to how much they can print.

On the other hand, only 21 million bitcoins will ever be created.Many bitcoin proponents speculate that this limited supply will only increase the value of the cryptocurrency in the long run.Learn how to send money using BitcoinThe very first bitcoin transaction took place on January 12, 2009, from creator Satoshi Nakamoto to developer Hal Finney.On October 5, online publication New Liberty Standard pegged the bitcoin exchange rate at 1 USD = 1,309.03 BTC — a calculation based on the cost of electricity for a computer to create bitcoins.July 2010 brought the founding of Mt.Gox, a bitcoin exchange that would eventually grow into the largest player in the market.We’ll start our bitcoin price history in 2011, using figures from CoinDesk’s price index.Early in the year, one bitcoin finally became worth as much as one US dollar.In just a few months, the price of bitcoin shot past the $10 mark.But on June 19 Mt.Gox was hacked, causing customers to lose more than 4,000 BTC.Bitcoin’s value hovered around $30 for several days and began a slow descent to around $4 by the end of the year.Bitcoin experienced recovery in 2012.

The cryptocurrency didn’t hit the same heights it did the previous year, but it climbed back into the double digits by the end of the year.June saw the founding of Coinbase, which is one of the largest bitcoin platforms today.In November the publishing tool WordPress began accepting bitcoin as payment.In February, bitcoin surpassed its previous all-time high and then abandoned the $30 range as it continued growing in value.At the same time, Mt.Gox was failing as bitcoin transactions overwhelmed its servers.Ross Ulbricht, the founder of dark web marketplace Silk Road (where bitcoin is used frequently), was arrested by the FBI on October 1.In the same month, bitcoin broke the $200 mark, and then it shot past $1,000 within a month.Chinese investment in bitcoin pushed the price of the cryptocurrency even higher.But December also saw the largest theft of bitcoins ever: 96,000 BTC from Sheep Marketplace.What’s worse, China banned its financial institutions from processing bitcoin transactions.Bitcoin’s price euphoria came to an abrupt end, and the cryptocurrency steadily lost value over a year.

Gox finally shuttered its doors.However, Microsoft and PayPal-owned Braintree started accepting bitcoin as payment.In late January, Coinbase launched its bitcoin trading platform.At the same time, Ross Ulbricht got life in prison and Mt.Gox’s CEO, Mark Karpeles, was arrested.But the European Court of Justice ruled that bitcoin is currency, not property, and that the cryptocurrency would not be assessed a value-added tax in the European Union.Bitcoin’s price broke the $400 mark toward the end of the year.The marketplace software OpenBazaar was released over the summer.It’s a peer-to-peer platform on which users can buy goods with bitcoin.Bitcoin’s price, in recovery mode at the beginning of the year, approached its former glory as it hovered around $1,000.Bitcoin peaked early in the year at over $1,100 on January 4.It then promptly plummeted below $800 a week later.While it’s grown steadily over February, at the time of the writing in late February, it sits at more than $1,000.Bitcoin mining: Can I make money doing it?At the time of this writing, bitcoin is worth $1,586.

But a week from now, it could be worth $1000 or even $2,000.Here are a few things that affect the price of bitcoin:Because bitcoin is a decentralized currency, the standards that dictate how to refer to it are still forming.In its earliest days, bitcoin’s currency code was BTC.With its growing acceptance as a legitimate currency, the International Standards Organization (ISO) has since designated bitcoin’s notation as XBT.If a currency is not associated with a specific country or government, its three-letter note starts with an “X.”However, XBT has yet to gain much adoption beyond banker and finance types.BTC seems to be what the everyday person and most enthusiasts prefer.Bitcoin’s legitimacy (and the general public’s interest in it) increases, you’ll continue to see references to both BTC and XBT until one eventually sticks as the standard.Details Features Paxful Bitcoin Marketplace Connect with bitcoin buyers and sellers through this peer-to-peer marketplace that accepts cash, credit and more than 300 other payment methods.

Fees: Varies by transaction, and PayPal no fees Supported countries: Worldwide Payment methods: Western Union, Paypal and many more Go to site More info Indacoin Cryptocurrency Exchange Use your credit or debit card to buy bitcoin and other cryptocurrency without having to verify your identity.Fees: Varies by transaction Supported countries: More than 100 countries are supported Payment methods: Payza, Credit/Debit cards (USD) and more Go to site More info CEX.IO Cryptocurrency Exchange Use your dollars, euros or rubles to buy and sell bitcoin with your dollars at competitive exchange rates and with high maximums for verified accounts.Fees: Varies by transaction Supported countries: Worldwide Payment methods: Wire, Credit/Debit, AstroPay Go to site More info Bitcoin Marketplace Trade fiat currency for bitcoin in person or online with this peer-to-peer exchange offering competitive fees and wide delivery options.

Fees: 1% commission for each completed operation Supported countries: Exchangers in 248 countries Payment methods: PayPal, Credit/Debit and more Go to site More info Have we missed anything in the comparison table?Tell us If the provider quotes a different rate to the one above please One US dollar (USD) is currently worth 0.000897 bitcoins (XBT).On the flipside, 1 XBT is worth 1,114.27 USD.In foreign exchange, this is what’s known as the mid-market rate — the midpoint between what buyers are willing to pay for the currency and what sellers are willing to trade it for.It represents what one currency is worth when converted to another currency.Here’s the mid-market rate between bitcoin and a few commonly traded currencies: Details Features Trezor Bitcoin Wallet Trezor is a secure way to keep your cryptocurrency safe from hackers and malware.PIN protection Recovery seed Single-purpose device Limited attack surface Go to site More info Have we missed anything in the comparison table?