Bitcoin Forum

Economy => Economics => Topic started by: Premium Account Reseller on January 18, 2016, 05:33:02 PM



Title: 5 Big Questions for Bitcoin Growth in 2016
Post by: Premium Account Reseller on January 18, 2016, 05:33:02 PM
1. How will scalability be solved?

The growth in bitcoin transaction volumes shows no sign of abating, and yet the 1MB block data limit is no closer to being raised than it was six months ago. Whether and how it is raised (via hard fork or changes to Bitcoin Core) will have lasting repercussions, and changing one of bitcoin's fundamental rules will have unintended, unpredicted and perhaps negative consequences.
One of bitcoin's earliest contributors has now written off bitcoin as a failed experiment .

2. Will reward halving affect price?

Assuming that cooler heads prevail with the block-size debate, and a consensus on scalability is reached before the technology and its network fractures (a big assumption, to be sure), it will be fun to watch what happens to the bitcoin price and mining incentives over the next several months.
For the second time since bitcoin was released into the wild, the bitcoin mining reward subsidy is scheduled to halve around July 2016, from 25 BTC to 12.5 BTC per block. Other things equal, this should result in some combination of smaller miners dropping out of the market, a rally in the bitcoin price, the curbing of mining difficulty increases, and greater interest from miners in allowing bitcoin transaction fees to rise.

3. Will bitcoin platforms attract developers?

Every tech company is building a "platform" when they are speaking with investors, but there simply aren't many true platforms in bitcoin. I'd argue that there are currently only two nascent bitcoin platforms worth watching in 2016: Coinbase and 21 Inc.

4. Will we see a killer app?

Let's go one step beyond questioning whether there are any viable bitcoin platforms and ask simply whether there are any interesting applications .
The industry's worst kept secret is that bitcoin remains a terrible currency for those with access to only basic financial services.

Credit cards offer better consumer protections, rewards, and user experience than bitcoin for nearly all purchases except for those in outright illicit or gray market industries like gambling and marijuana.
5. Will we see autonomous transactions?

The viability of micropayments as a killer bitcoin app has proven to be questionable at best over the past seven years.

There's the issue of "mental accounting barriers " which were highlighted by cryptographer Nick Szabo as far back as 1996 do we have the mental capacity to truly pay attention to the difference between $0.05 and $0.10 in a single payment?


Title: Re: 5 Big Questions for Bitcoin Growth in 2016
Post by: tyz on January 18, 2016, 06:41:06 PM
You should name the source of the 5 big questions ;)
They have been released on an article on Coindesk. See here http://www.coindesk.com/five-big-questions-for-bitcoin-growth-in-2016


Title: Re: 5 Big Questions for Bitcoin Growth in 2016
Post by: Amph on January 18, 2016, 06:53:35 PM
numerous proposal of 2mb each are on the right track for the scalability issue

i firmely believe that the halving will affect the value, because the diff is not sitting there watchign the halving coming

other problems are mostly related with adoption


Title: Re: 5 Big Questions for Bitcoin Growth in 2016
Post by: WhatTheGox on January 18, 2016, 08:08:15 PM
1. How will scalability be solved?

The growth in bitcoin transaction volumes shows no sign of abating, and yet the 1MB block data limit is no closer to being raised than it was six months ago. Whether and how it is raised (via hard fork or changes to Bitcoin Core) will have lasting repercussions, and changing one of bitcoin's fundamental rules will have unintended, unpredicted and perhaps negative consequences.
One of bitcoin's earliest contributors has now written off bitcoin as a failed experiment .

2. Will reward halving affect price?

Assuming that cooler heads prevail with the block-size debate, and a consensus on scalability is reached before the technology and its network fractures (a big assumption, to be sure), it will be fun to watch what happens to the bitcoin price and mining incentives over the next several months.
For the second time since bitcoin was released into the wild, the bitcoin mining reward subsidy is scheduled to halve around July 2016, from 25 BTC to 12.5 BTC per block. Other things equal, this should result in some combination of smaller miners dropping out of the market, a rally in the bitcoin price, the curbing of mining difficulty increases, and greater interest from miners in allowing bitcoin transaction fees to rise.


But if the price goes up the smaller miners stay in, i think the price will just go up and everyone will keep mining. What else aare you going to do, you spent money on equipment and time learning about bitcoin and you likely want to support the network. 95% chance it causes a bubble.