Just in 2017, bitcoin prices have soared 125%.And traders can probably thank President Trump for at least part of the big spike.Last week, markets were rocked after reports about former FBI director James Comey's memo about being asked by Trump to stop an investigation of former National Security Adviser Michael Flynn's ties to Russia.Stocks plunged due to rising levels of uncertainty about Trump's ability to get anything meaningful accomplished as he deals with this crisis.And the US dollar weakened too.But bitcoin (XBT) is a beneficiary of this turmoil.One of the reasons digital currencies like bitcoin and lesser known ones such as Ethereum and Ripple have soared this year is because they, like gold, are not backed by governments.Bitcoins are tracked in a public online record known as the blockchain.There are a finite number of bitcoins that can be "mined" -- that is, made available after a complex math problem is solved.And even though the record of transactions is public, there is a level of anonymity about who is making the transactions.

Bitcoin prices have tended to pop over the past few years at times of geopolitical uncertainty -- and especially when there were significant questions or concerns about the health of a major country's paper currency.Trump has already talked about wanting the dollar to be weaker to help make the products of big US multinationals more competitive overseas.So that may be helping to lift the price of bitcoin.The president also has some known bitcoin bulls in his administration as well.bitcoin blockchain virusHis budget director, former US House member Mick Mulvaney, had been dubbed the "Bitcoin Congressman" by some of the currency's backers.bitcoin block payoutAnd vice president Mike Pence's chief economist Mark Calabria has given speeches in support of bitcoin as well.litecoin wallet code

Calabria was formerly the director of financial regulation studies at the libertarian-leaning Cato Institute before joining the administration.Many experts also think President Trump's fiscal spending plans could be highly inflationary.That could further weaken the dollar and fuel the rise in bitcoin and gold prices.But concerns about just what Trump will actually be able to accomplish in the wake of the Comey allegations are another big reason for the dollar's recent slide and accompanying rise in bitcoin.bitcoin kaufen mastercardThere is even some speculation about whether or not Trump's presidency could end prematurely due to him resigning, being impeached, or removed via the 25th Amendment of the US Constitution.bitcoin satoshi euroAdd it all up and it appears that bitcoin prices could continue to climb higher.bitcoin sydney pub

But some are worried that the party could end soon.I asked my followers on Twitter what they thought was next for bitcoin.Several expressed concerns that prices will come tumbling down since bitcoin has been an extremely volatile investment over the past few years.When bitcoin topped the $1,000 level in January, it was the first time it had done so in three years.@LaMonicaBuzz What's the acceptance among demographics?I'm apprehensive about it since I'm not certain about how it's regulated.— JOMP (@musicandwork) May 22, 2017 @LaMonicaBuzz @AdamSinger Depends who you ask.ethereum reddit investTraders see a bubble.bitcoin for cs go skinsTechnologists see limitless potential.bitcoin pleaMaybe this time is different?Pain likely on journey tho.— Dave Lauer (@dlauer) May 22, 2017 Those are great points.

It is debatable whether bitcoin can ever become a mainstream form of payment.Just look at how little money the hackers behind the recent WannaCry ransomware made by demanding payment in bitcoin.But Ross Gerber, CEO of investment firm Gerber Kawasaki and a frequent guest on CNNI's business programs, noted that bitcoin may be the perfect currency for these crazy and tumultuous times.#bitcoin has gone insane in the insane world it was made for.Global leadership chaos pushes price to $2183 and over $35 bil market cap.https://t.co/wvTW3j8cpu— Ross Gerber (@GerberKawasaki) May 22, 2017 In other words, bitcoin and its smaller digital currency siblings could continue to benefit from all the turmoil in Washington.The price of Bitcoin could hit more than $2,000 in 2017 driven by expectations that U.S.President-elect Donald Trump may introduce economic stimulus policies, which could send inflation soaring and propel the dollar to record highs, a report from Saxo Bank claims.Bitcoin is currently trading around $754.51, according to CoinDesk data.

A handle of over $2,000 would represent 165 percent appreciation.During his election campaign Trump has talked about an increase in fiscal spending.Saxo Bank's note said that this could increase the roughly $20 trillion of U.S.national debt and triple the current budget deficit from approximately $600 billion to $1.2-1.8 trillion, or some 6-10 percent of the country's current $18.6 trillion economy.As a result, the economy will grow and inflation will "sky rocket", forcing the U.S.Federal Reserve to hike interest rates at a faster pace and causing the U.S.dollar "to hit the moon".When inflation rises the Federal Reserve may raise interest rates to bring it under control.This causes the dollar to appreciate because it would be seen as an attractive currency for foreign investors."This creates a domino effect in emerging markets and China in particular, leading people globally to look for alternative forms of currencies and payment systems not tied to central banks that have exhausted monetary policies or crony governments that are in full financial repression mode nor transaction systems that are long overdue for a revolution," Steen Jakobsen, chief economist at Saxo Bank, wrote in a note.

Bitcoin as the largest cryptocurrency would benefit from this "chaos", he added, as emerging market countries look to move away from "being tied" to the monetary policy of the U.S."If the banking system as well as sovereigns such as Russia and China move to accept Bitcoin as a partial alternative to the USD and the traditional banking and payment system, then we could see Bitcoin easily triple over the next year going from the current $700 level to +$2,100 as the blockchain's decentralized system, an inability to dilute the finite supply of bitcoins as well as low to no transaction costs gains more traction and acceptance globally," Jakobsen said.Blockchain is the underlying technology of bitcoin which records every transaction using the digital currency so that it can't be tampered with.There is also a finite supply of 21 million bitcoins.This in theory would cause price appreciation of the asset over a long period of time.Jakobsen's comments were in his annual "Outrageous Predictions" note and the economist says that his views are not the official outlook for Saxo Bank.