Bitcoin Could Rise By 165% To $2,000 in 2017 Driven by Trump's 'Spending Binge' and Dollar Rally (cnbc.com)

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. An anonymous reader shares a CNBC report: 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.

Comments

Re:Trump will tax it

[Enigma2175]

He already is. He's talking about increasing long term capital gains taxes, which taxes investments like bitcoin.

Don't worry, he will repeal the estate tax so that billionaires can pass on all their money to their children (instead of just most of it) so that the new generation of bosses are the same as the old generation of bosses. Meanwhile, the people who voted for him because they are getting screwed economically will still get screwed. What did you think would happen when you elected a billionaire?

Also, where do you get that he is planning on raising capital gains taxes? His site says:

The Trump Plan will retain the existing capital gains rate structure (maximum rate of 20 percent) with tax brackets shown above.

So his plan is to lower income taxes on the ultra-rich and increase spending. I hope all the Tea Party representatives that shut the government down during the Obama administration will stop his attempt to run up the debt but I doubt that will happen.