{"id":41481,"date":"2017-01-17T10:02:55","date_gmt":"2017-01-17T15:02:55","guid":{"rendered":"http:\/\/www.ino.com\/blog\/?p=41481"},"modified":"2017-01-17T10:02:55","modified_gmt":"2017-01-17T15:02:55","slug":"this-coin-smashed-all-again-and-again-to-pieces","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2017\/01\/this-coin-smashed-all-again-and-again-to-pieces\/","title":{"rendered":"This Coin Smashed All...Again...And Again To Pieces!"},"content":{"rendered":"

\"Aibek<\/a><\/p>\n


<\/p>\n

A year ago I wrote<\/a> about the comparative dynamics of three outstanding kinds of money of different generations \u2013 the older generation was represented by gold, the 20th-century generation was represented by the Dollar (Index) and for the modern generation I used the cryptocurrency Bitcoin (BTC). I think some of you have just discovered the serious value of Bitcoin as it just crushed the rivals doubling its value. The dollar index (DXY) gained only 8% as gold showed negative dynamics in 2015. Below I put the result of the poll you voted on a year ago for the 2016 year performance.<\/p>\n

Chart 1. Voting results January 2016: You Bet On Safety<\/h2>\n

\"INO.com<\/p>\n

I noticed that there are a plenty of gold bugs among regular readers as gold gathered the most votes. The second position went to bitcoin and it shows that there are many modern enthusiasts among our readers. It looks like the least amount of optimism was felt about the US dollar\u2019s future although it didn\u2019t rank the last in 2015. Let\u2019s see, in the chart below who the winner was.<\/p>\n

Chart 2. Bitcoin Vs. Gold Vs. Dollar Index in 2016: Deja Vu!<\/h2>\n

\"Chart<\/a>
\nChart courtesy of tradingview.com<\/small><\/p>\n

The majority of readers\u2019 votes turned out to be wrong. Another brilliant victory of the cryptocurrency which scored even more than in the previous year hitting a 120% handle. It is amazing that bitcoin gained the maximum by the end of the year, making a Santa Claus Rally, which is more common for gold\u2019s behavior.<\/p>\n

At the start of 2016 it wasn\u2019t obvious that the digital currency (blue line) could gain anything at all as it hit the minus 20% mark (the normal range for it) amid profit taking. It recovered above the zero point only in April and then rocketed above a whopping 80% level gain in June at the $773 mark. This sky-high level attracted sellers who pushed the price to $465 low with a temporary stop at the $600 level. The gain melted dramatically from 81% down to just 22% falling below a rising gold. This deep correction was just a step back before a new takeoff as the price started to smoothly elevate higher in August, this time without violent price action until the last week before the Christmas. By that time Bitcoin gained back its losses and crossed the 80% mark again. And then the above mentioned Santa Rally broke the 100% handle and on the 4th of January (not shown here) it scored almost 160% level at $1140, the level not seen since November 2013! The performance of Bitcoin in 2016 has significant difference compared to 2015 \u2013 this time it has obvious steady uptrend with huge volatility.<\/p>\n

The dynamics of gold (orange line) in 2016 was described last month<\/a>. This metal wasn\u2019t at the top even among other metals so there is nothing I can add. It gained only 8.5%.<\/p>\n

The US dollar (index) (red line) scored just 3.7% by the end of 2016. The fiat currency is an ultimate loser and it justified the lowest bet level made last year. Its price line looks flat like a skyline with the narrow range between -6% and +5% marks.<\/p>\n

The \u201ckid\u201d again stole the show. I put an interesting statistics chart below for your information.<\/p>\n

Chart 3. Confirmed Bitcoin Transactions Per Day: Exponential Growth<\/h2>\n

\"Bitcoin<\/a>
\nChart courtesy of blockchain.info<\/small><\/p>\n

On the chart above, you can see the rapid exponential growth of the amount of daily confirmed Bitcoin transactions, which tripled in the last 2 years hitting the 300, 000 mark. This shows the stable growth of Bitcoin\u2019s usage around the world. To compare the amount of SWIFT (interbank) payments is stable at 10-13 million transactions per day for the past 3 years. It surely can take some time to reach this level of fiat currency transactions, but it doesn\u2019t look impossible anymore.<\/p>\n

I need your valuable opinion again for this year and I encourage you to vote below:<\/p>\n

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Which instrument will gain the most in 2017?<\/strong><\/p>