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Bitcoin Price to Soar in 2016

Tuur Demeester, an Economist and the Editor in Chief at the Adamant Research, recently shared his thoughts as to why there seem to be a lofty prediction on Bitcoin’s price.

According to Demeester, expect the following for the next 12 months on the bitcoin arena:

  1. The bitcoin network will scale

After many months of debate, I think 2016 will reveal a decision about how to scale bitcoin for the next few years.

There are a number of prudent and effective proposals on the table today, such as Pieter Wuille’s ‘Segregated Witness’, and Adam Back’s BIP248.

Tuur expects one of the many proposed solutions to be implemented before the summer, to then later be supplemented by innovations such as pegged sidechains and the Lightning Network.

  1. Bitcoin will shine as a safe haven asset

Renewed volatility in global markets will result to liquidity problems popping up unexpectedly.

As a result, funds and investors will seek to hold assets with low counterparty risk. This would make bitcoin as one of these, more so than in previous years.

  1. Sidechains will be appreciated as major technical breakthrough

Similar to how bitcoin had to overcome accusations of being a Ponzi scheme in the early days, sidechains technology is now met with skepticism and mistrust.

As more operational sidechains come online and their utility and open-source nature become visible to the world, perceptions are expected to change for the better.

  1. Commodity giants will get involved with bitcoin mining

Faced with a bear market in commodity prices which implies a declining demand for electricity, some big primary sector companies will partner up with bitcoin mining companies to provide them with legal framework and physical infrastructure – allowing bitcoin transaction processing to take place in some of the most barren regions of the world.

  1. The bitcoin remittance network will further strengthen

Bitcoin exchanges integrating with each other internationally, deployment of more bitcoin ATMs and growth of bitcoin-friendly remittance platforms will allow for more and more people around the world to send money to their home country using bitcoin as a vehicle.

Should we see increased volatility in fiat currencies and the enforcement of exchange rate controls, then those too will serve as a catalyst for bitcoin remittance growth.

  1. The block reward halving will have a positive effect on the bitcoin price

In mid July 2016, the amount of new bitcoins awarded to bitcoin miners will drop from 3,600 BTC per day to 1,800 BTC per day.

With that, the annual increase in the bitcoin money supply will drop from 9.17% to 4.09%. Miners will have a diminished capacity to influence the markets (rumor has it that over the past two years they have engaged in quite a bit of short selling prior to pushing newly mined coins in the market).

Demeester expects that with the block halving, all else being equal, to have a positive effect on the bitcoin price.

  1. Investors will be surprised

In the bitcoin community, developers come with new hacks and solutions on a daily basis, competition is fierce and decidedly global, investors are eager yet often inexperienced and banks and governments are uneasy and fickle.

Bitcoin technology is only seven years old and bitcoin as a financial asset is only five. Over the next 12 months, expect to be surprised.

It’s for that reason as well that Demeester only attaches a 75% probability to his predictions above.

2016 is shaping up to become an incredible year for bitcoin – maybe it will be the year when investors finally realize they cannot afford to not pay attention to this paradigm shift in money and finance.

Tuur Demeester is an independent investor, newsletter writer and editor in chief at Adamant Research. Launched in 2015, Adamant Research provides a monthly newsletter service. The inaugural report, ‘How to Position for the Rally in Bitcoin’ can be found here.

About the author

Henry is the Founder and Executive Managing Director of Compumatrix and Networks International. He is also the Editor-in-Chief of the Compumatrix Bloggers' Network.


  1. And looking back from 2020 YES indeed Bitcoin did soar in value…but most importantly Bitcoin is still here and not going anywhere!!

  2. WOW! There have been many changes in the last 4 years since this was posted. The price has flown and BTC along with other cryptos has definitely become a safe haven!!!

  3. I actually went back to check its history;
    Back in March 2010 the price was as low as $0,003.
    In the next coming 6 years it climbed to around $600..Must be some kind of record!
    Impressive to say the least.
    Right now it’s getting close to $10K, and continue to look for a very bright future.

  4. It’s interesting now to look back in hindsight when you said, ” The block reward halving will have a positive effect on the bitcoin price”. This is exactly what happened leading to the almost $20,000 price of BTC at the end of 2017. Bitcoin truly did become a safe haven for investors. As long as they can handle the short ups and downs like that of the alligator teeth, now matter what it does in the short term, the HODL’ers win out in the end so far.

  5. Bitcoin reached its ATH in December of 2017
    $ 20,089 Brfore and since then the price is always volatile
    It goes up (time for selling) and it goes down (time to buy the dip )
    Will it reach a higher ATH than in 2017 ? I say yes
    So don’t hesitate in buying BTCs , a fraction will do

  6. It has been interesting to follow all the changes and various opinions on what will happen to BTC! The ups and downs may be scary to some, but investors who know what they are doing will always win, both longterm and shorterm. As the author says, investors will have to pay attention to the paradigm shift in money and finance, so my guess is that they will start buying as much BTC as they can. If I can’t afford to buy, I’ll just hodl and enjoy my asset grow.

  7. great article and even better responses to actual reality of investing and the importance of watching and acting in appropriate manner and with great wisdom and in a speed mixed with patience and watch sometimes as we saw in 2017 when BTC hit 20K but now back to 9100+ so being vigilant and wise in your action is the start to success imho —

  8. Having experienced 2 “halvings” lends itself to a better understanding of what Bitcoin is all about. Understanding the concept of scarcity is a perfect example of why our monetary system has failed. There have been many comparisons between Bitcoin and Gold regarding monetary values. However, even Gold can lose it’s value due to scarcity. Gold has its value based on how much Gold is available. One must concern themselves with the possibility of a major Gold find destabilizing the value of Gold whereas, Bitcoin has an absolute number of “coins” that can be mined.

  9. History proved this blog title to be absolute! I am very excited to find what the next BIG Bitcoin historical event will be! I love this quote as this to me is saying we “ain’t seen nothing yet!”
    “The bitcoin remittance network will further strengthen
    Bitcoin exchanges integrating with each other internationally, deployment of more bitcoin ATMs and growth of bitcoin-friendly remittance platforms will allow for more and more people around the world to send money to their home country using bitcoin as a vehicle.

    Should we see increased volatility in fiat currencies and the enforcement of exchange rate controls, then those too will serve as a catalyst for bitcoin remittance growth.”

  10. it is fun to go back and research different parts of different things but i agree with as time has played out — there is in the volatility factor of other types of currency a certain part that keeps bitcoin and few other currencies perse’ a good hold in my opinion and think that as time continues to — having a certain type or a legitimate variety of legit currencies and then be patient may be a good answer ??

  11. At the time this article was written, Bitcoin was around 500 USD. At the end of 2016, Bitcoin was at 800 USD. And by the time 2017 ended, Bitcoin rallied up to almost 20,000 USD. Now in 2020, Bitcoin is at 9,100 USD, but no matter the price – Bitcoin is still around. Bitcoin did not fizzle out or the scam collapse. Bitcoin and cryptocurrencies as a whole are still going strong and ready for the public to start using it as the go-to transaction method!

  12. The Bitcoin price fluctuates so much these days from the 9,000 USD price point to the 10,000 USD price point. It is interesting to see the history of bitcoin to when it was trading for pennies to when it was trading at 20,000 USD to now. I think although the price fluctuates significantly, there is still money to be made and potential for massive upside.

  13. all i will add is that if Bitcoin stays in the neighborhood it is in now that $9K area there are a ton a of people who are just so excited — remember as stated couple replies ago when BTC was $500. $800. per and for it to be basically stable and a real part of the financial worlds — there is a ton of Joy in mudville to borrow a saying from a classic —

  14. Nice blog Henry . As you noyed Tuur Demeesters various point about Bitcoin/cryptocurrecy,his prediction hypothesis and future directions are right in line of his various calls. Having risen to highs of nearly 20000 and with tremendous fluctuation all the way down to 3000 and then rising gradually to around 12000 is in itself evidence that the Bitcoin as currency is not going anywhere but up.My own belief is in HODL and will stick by it .

  15. Yes, it did take off and soar! and look at it now it’s going up again. From what is expected it could be a mind-blowing event if it keeps going up so enjoy the ride. It’s amazing how much it has gone up when you think about it we almost hit 20,000. We could do that this year, you never know but we do know is bitcoin isn’t going anywhere but up. Thank you Henry.

  16. Nice blog post Henry. The price of bitcoin really went up a lot and reaches now almost $ 12000,- Predictions these days are that the prices will even go much higher. I hope it will. It will only make my profit higher because I started to buy small portions of bitcoin when the price was around $ 3000,-.

  17. When you look back at the price changes on average per annum, it really is incredible. Yes there have been some highs and lows, but like all things trade-able it is the nature of the beast. I believe that the longterm value will only increase, albeit with the occasional fall back.

  18. I love to look back at the various predictions made on the bitcoin value, sometimes it is comical, sometimes just insane, but we have seen an insane rise once before and I am certain that will not be the last time. Overall it is a sound long term investment plan.

  19. It’s so interesting to look back at how the price has changed so dramatically over time but I’m even more excited to see how that price climbs in the present and future. All very exciting and thank you Henry for providing myself the insight into crypto.

  20. I watch the price of Bitcoin daily ..Well two and three times a day I check it. When you think of what one could buy Bitcoin just a few years ago , I some time wonder why I did not buy back then . It all comes down to understanding the crypto ecosystem . Well I have not been able at this point to buy the dips and play the market.

  21. When looking at the price of bitcoin, I have learned not to get too excited when it goes up because it will inevitably also go down. In the short term you will see constant fluctuations. There’s no point in getting distressed when it goes way down on some occasions, since it will later make its climb back up. It’s good to be able to look back in the long term and see how bitcoin has stood the test of time and maintained its value.

  22. agree — excitement is not good when working in finances and investments must remain more quiet in a sense and keep looking for exacts as opposed to volatility and it is a legit source as time will prove and honestly right at this moment at $10K ++ it is still bringing me a smile —

  23. The history of Bitcoin is so interesting. Its a history lesson that many could have never predicted and many more years of the unknown. What I do know is I want to know everything I can about Bitcoin. Its fun to listen to all the predictions about the future and see who is truly right and who is wrong. In one year I would like to read this blog again and see where we are as a company and where Bitcoin has gone.

  24. I really started my little purchases in bitcoin in 2017, so this post with 2016 predictions is useful to look back on. Not long after my first purchase the price rose a little, then dropped quite noticeably and I was concerned, but only for a moment, my confidence in the rise of bitcoin’s value is unwavering.

  25. I loved the title of this article about Bitcoin projected to rise and soar in 2016. They couldn’t have imagined what it did there in 2017. It rose to close to $20,000 USD. What a great time that was for those who were involved in the triggers selling their BTCplus for BTC. It was during that 2017 rally that the first 10 triggers triggered as I remember.

  26. Very nice blog Henry, I see the price of bitcoin every day. I like to get information about Bitcoin and other cryptocurrencies.That’s great bitcoin will shine as a safe haven asset.The center of this asset for us compumatrix.

  27. I enjoyed your blog funny they thought it was a ponzi scam back in the day it certainly has proved to NOT be that and it is still going strong in 2020 so much has happened since 2016 at a blazing speed with this technology. It will be exciting to keep watching it take off as it is accepted more and more by the people and businesses.

  28. Here we go again ,a rally on Bitcoin and other crypto currencies .. Oct. 22 2020 Bitcoin is rising over twelve thousand and slowly crossing on to thirteen thousand. In fact once yesterday I looked and the price hit thirteen thousand and six dollars before settling below thirteen thousand again. how far will Bitcoin grown this time . Looking forward to the answer. time will tell.

  29. Very true Henry about Bitcoin price soaring,and as we see Bitcoin cross $14,000 level after 4 years.Let us pray we see Bitcoin cross it’s all time high of $20,000 since 2017,before the end of this yer,God Willing.

  30. Yes, I remember when I got involved with the triggers. It was ,if I remember correctly, at around $300. As it soared we were able to buy into new triggers until it was around $20,000. Now it seems to have leveled off at about $10,000. I for one am excited about the future of Compumatrix and Bitcoin. Up,
    Up and away!

  31. I Loved the blog. We are at $14,900k right now. We were at 15k, so I hope we balance out and keep going up. It’s amazing and exciting watching this happen. It fluctuates so much. You definitely have to be able to handle it too emotionally. And as a precaution, please be careful when trading.

  32. Now in the beginning of 2021, BTC has reached a high of $42,000. Down to about $32k now, but will reach over $50k by summer. Maybe even more. The world is taking notice.

  33. Looking back ..Way Back and now here it is 2021. WOW what a change . went up to over sixty thousand ,,, Settling today as I write this .. $ 59,453.00 WOW what a difference and how far Bitcoin has increased in value. Would you ever have thought it would be such a value . Surprising .. but the sign of the times.

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