As concern grows over a new banking crisis in Europe given the volume of non-performing loans valued at a total 1.1 trillion dollars by KPMG, new developments may challenge the future of the banking sector as a whole. Indeed, the price of the digital crypto-money Bitcoin has reached a new record high beyond 1,000 dollars by topping at 1,021 dollars.
According to analysts, the 137% jump over the last 12 months actually reflected a rise in uncertainty as much as it copied more largely the recent rally on the financial markets. Once again, Donald Trump and China would be the two main decisive factors. The election of Trump to the White House generated much optimism and much uncertainty as well considering he’s a novice and that his policies should likely be more straight and direct than usual.
China’s preparation for the new American context is being backed by a continuous devaluation of the national currency, the Yuan, this way inciting thousands of Chinese people to buy Bitcoins with a view to preserving some added value against the US dollar.
Lastly, the growing use of the Bitcoin with a total valuation worth around 14 billion dollars reflected the public’s growing interest, especially in emerging economies, in solutions alternative or complementary to the traditional banking system.