The big story in the Forex world last year, at least according to the mainstream media, was the continued strength in the USD, particularly the US Dollar Index. The index measures the strength of the greenback against the Japanese yen, British pound, Canadian dollar, Swiss franc and Swedish krona.
The US Dollar Index (DXY) rose an approximate 8.3% last year, marking back-to-back years of significant gains (2014 marked its best year since 2005). Throw in the Fed’s recent rate hike with its expected continued monetary tightening, and the mainstream media has its golden boy for 2016.
But not so fast…
The World’s Best Currency in 2015
There’s a currency few are talking about which absolutely shattered the performance of every currency in the world last year (including the USD). In fact, this is the second time in three years that this currency has been the world’s top performer, yet it seems the mainstream media refuses to cover the story in a positive light. Seems they only like to bash on this currency, which unlike every national fiat currency in the world, is not controlled by a central bank.
I’m talking about Bitcoin of course. The highly controversial cryptocurrency increased roughly 35% against the USD in 2015…
In 2013 it increased a staggering 5400%; and then, as can be expected with any parabolic rise, 2014 saw Bitcoin correct over 50%. This sharp correction gave Bitcoin the unflattering title of worst performing currency in the world that year…
And that’s why 2015 was such an important year for the cryptocurrency. After 2014’s rough year, which was mired in controversy surrounding Bitcoin and some of the exchanges it traded on, it was important for its credibility to have a strong year. Another bad year and the media would have had a field day with the young and ‘off the grid’ currency.
Crytpocurrencies are still in their infancy - the experimental stage so to speak. And Bitcoin’s market is not without controversy and fraud. However, right now, it appears Bitcoin is here to stay. Another strong year for the preeminent cryptocurrency in 2016 and user adoption could skyrocket. Here is a link to chart its performance throughout the year.
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