The U.S Congress has finally opened government again after passing it’s US debt bill, as the Senate approved the bill 81-18 and the House of Representatives approved it with 285-144. What does this mean for Bitcoin, and it’s trading value? In the span of an hour, Bitcoin’s price fell 5 percent from a high of $160.43 down to $148.12, with a total of 10,514 Bitcoins exchanging hands. Just 24 hours after the US debt bill was passed, Bitcoin has recovered to $157.76, just under what it was before the bill. Now, 48 hours after the Debt Bill was passed, the price of a Bitcoin is now at $168 (Mtgox).
This just shows how well Bitcoin recovers after major events, for example how Bitcoin recovered from a low of $109.70 after Silk Road’s closure and bounced back up to a high of $139.80 in 24 hours. Another great feat is that Bitcoin is at it’s highest since the April crash, a low of around $50, now risen over 3 times that price to where it is today, over barely six months. At the same time, the NASDAQ Composite increased 18.1%, Dow Jones Industrial Average (DJI) increased by 4.1%, and the S&P 500 increased by 9.8%, falling short of Bitcoin’s 200-300% increase in price over the same six months. With a U.S annual inflation rate of 1.52% for 2013 also guarantees that you are losing 1.52% of your wealth this year, and with gold and silver on a downturn, it may just cause investors and companies to turn to Bitcoin as an alternative.
But how long would Bitcoin keep rising? Most fiat currencies such as the U.S Dollar is losing a lot of value over time due to inflation. Gold and silver may be used to protect and store your wealth, but with gold’s value decreasing, almost $400 in 10 months, from $1693 in January 2013 to $1319 in October 2013, would Bitcoin keep steadily growing, or would it devalue and get forgotten overtime? So, just how much major events are needed in the Bitcoin economy for massive growth, just like the ones that happened this past year? Would the U.S start getting rid of it’s debt, creating a stronger U.S Dollar and thus a lower Bitcoin value, or would Bitcoin continue to rise? Be sure to comment below your opinion on where Bitcoin’s price will fall when the New Year rings in and 2013 comes to a close.