Juniper Research, one of the leading analyst firms in the mobile and digital tech sector, predicts that the total volume of all bitcoin transactions may exceed $92 billion by the end of 2016. In 2015 the volume made up $27 billion. Even comparing to the beginning of 2016, bitcoin is now trading at values nearly 50% higher. Transaction volumes are still concentrated mainly on the exchanges.
Juniper Research presented its research called “Will Bitcoins Bite Back” where it revealed most possible reasons for such a bitcoin spike. Juniper Research enumerates uncertainty over the U.K.’s vote to leave the European Union, weakness in China’s economy and the upcoming halving time as factors that encouraged this rise in bitcoin transaction.
Indeed, after Britain had voted to leave the European Union, bitcoin price raised almost by 9%. Bitcoin society shared the opinion that Brexit will result in further decline of the Euro and in turn incredible boost of bitcoin. The event was rather predictable as political and economic instability grows in many regions of the globe.
Russell Newton, Global Advisors Bitcoin Investment Fund (GABI) owner and former JPMorgan commodities strategist, said: “I believe that Brexit will invoke the feeling, at least in the UK, that bigger, structured, controlled and mandatory management is not the way forward, in politics, life or finance.”
Dr Windsor Holden, head of forecasting & consultancy at Juniper Research and author of “Will Bitcoin Bite Back”, underlined also the impact of concerns around Donald Trump possible presidency in the US on bitcoin trading and volume.
“If Donald Trump becomes president of the U.S., there is the very real prospect of turmoil on world markets — the Economist Intelligence Unit ranks his presidency within the Top 10 global risks,” said Dr Holden. “However, bitcoin trading would thrive in such an environment, at least until the impact on major fiat currencies becomes clear.”
According to the report released by Juniper Research last year, the number of active Bitcoin users around the globe will approach 4.7 million by the end of 2019 (comparing to approximately 1.3 million in 2014).
Another report ‘The Future of Cryptocurrency: Bitcoin & Altcoin Impact & Opportunities 2015-2019’ published by the same research service, predicted that exchange trading will be widespread while retail adoption will be “restricted to relatively niche demographics.”
According to the report, plenty of high profile retailers are starting Bitcoin payment, however online and offline deployments’ activity is really low. Dr Windsor Holden, the author of the report, noted: “While average daily transaction volumes have increased by around 50% since March 2014, the indications are that much of this growth results from higher transaction levels by established users rather from any substantial uplift in consumer adoption.”