At press time, the price of Bitcoin was at $3,774 - down from the $4,500 we saw a few days ago and this has led Bitcoin enthusiasts to raise several questions about the fate and future of Bitcoin.
Contrary to what the featured image of this post(as seen above) might cause you to suspect, it is not a representation of Bitcoin breaking - it's actually about the halving of Bitcoin every four years.
In this report @BlockRush answers your top 3 most important questions about the fate and future of Bitcoins. Enjoy.
1. Why are prices down?
As explained in our previous post some of the reasons attributing to the price drop of Bitcoin and crypto currencies include:
- Speculations that governments might crackdown and impose tougher sanctions crypto currencies in a bid to limit their use by terrorists
- Technical software challenges in the case of Steem Ethereum and Bitcoin
- The rise of several altcoins which boast of greater transaction speeds, privacy protection and lower fees has seen many users migrate off the major crypto currencies
- Again the rise of special crypto tokens which serve as crypto bonds and crypto shares from ICOs have caused investors to diversify their funds
2. Are price speculations normal?
Is Bitcoin dead? is Bitcoin dying? Everyone wants to know. Speculations do not kill nor are they facts. Bitcoin neither dead nor dying, its just warming up.
Bitcoin is not collapsing nor is it facing market price correction. The actually price of Bitcoin would have been over $6,000 if not for fears of a potential split in November.
Like other crypto currencies and even stocks, Bitcoin has no backing and its price are determined purely based on:
- demand by the market
- speculation of investors
Currently there is little demand for Bitcoin as its is still slow compared to Bitcoin Cash and other crypto currencies out there. Also there fears of a potential fork in November when SegWit 2x increases the block cap to 2mb has caused investors to away from Bitcoin until November 1st is over.
Last month in July Bitcoin saw another price lock as it struggled for weeks in a price bubble which was due to speculations of fears of the potential split on August 1. The same is happening again as fears of another potential fork in November is keeping people away from Bitcoin.
3. Will Bitcoin will recover?
Yes. Bitcoin will not collapse or die. Bitcoin is an idea, the idea for a free, open, transparent, autonomous and secure financial system. Bitcoin is the father of crypto currencies and the mother of Blockchain technology.
Bitcoin is the face of the Sharing Economy and Bitcoin is the hope of anarchists. Bitcoin will not die. There are only 21 million Bitcoins and the more people come to know of the legendary Bitcoins, the more its adoption will cause it price to explode.
Bitcoin's developers have the best interest at heart and will not let Bitcoin down. Bitcoins' investors have invested more into Bitcoin than into their own retirement funds and will not let Bitcoin fail.
Bitcoin is still the most popular and most credible cryptocurrency in existence. Bitcoin is supported by over 1 million merchants world wide including Barclays banks, Google, Paypal, Wikipedia Foundation, Virgin, Fiverr, Stripe, AlphaBay(former biggest online black market), Microsoft, Newegg, LionsGate films, Whole Foods, Dell, The Internet Archive, Bloomberg, Intuit, US State Republican party, US Libertarian party, Shopify, Mint, Mega.co.ng, $Chan.org, Zynga, Telsa, Peace Airline, Namecheap, OkCupid, Home Depot, Reddit, Wordpress, Save the Children foundation, Steam, as well as several adult websites including Naughty America and Playboy.
Bitcoin has unparalleled infrastructure behind it - mining power beyond all the world's super computer, Bitcoin has satellites beaming its transactions down from space, Bitcoin has AMTs and Bitcoin has light bulbs that mine it.
Everyone uses Bitcoin: Christian, Muslims, Hindus, Buddhists, atheists, the LGBT community, feminists and everyone else of whatever segregation uses Bitcoin. As you can see, if you thought no one used Bitcoin - sorry you are the only one who doesn't; if you did expert Bitcoin to die - sorry Bitcoin will outlive you, this generation, the next and the next.
Did you know that the price drop for crypto currencies is good?
To understand why the price drop of Bitcoin and crypto currencies is good for business, read our previous post:
Bitcoin falls below $4000 as cryptocurrencies are down - why and how to go shopping! @BlockRush
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