http://www.cryptocoinsnews.com/bitcoin-price-goes-down-good/If my analysis is correct, we are beginning to see a structural downward trend, and this trend is good, because it shows that the Bitcoin economy is becoming real, with less speculation and more use as a currency for every day’s life. This is the first phase of the real Bitcoin economy.
I like the points made in this piece - in my opinion, this is the first thing I have read in a while that really helps to point out why we are having the recent price drops, and counts them as actually being good indicators. Maybe I am just looking to hear something positive, but this makes sense for me. The argument is that we have been mainly using Bitcoin as a speculative medium for the past while (which I believe), but as people start to use it to actually conduct business the price will go down because people are using coins rather than holding.
As we start to see more businesses and suppliers accepting Bitcoin, we will eventually move into a phase where the need to convert back to fiat in the process disappears entirely, at which point price starts to rise again.
My only issue with this article:
Everyone and his dog are worried about the ongoing decline in the value of Bitcoin, but I am here to tell you that 1) This is good, and 2) The trend will eventually reverse.
Bitcoin's value has not been going down - it's price has. Value is different than price, and value is increasing. It increases with user base, merchant base, acceptance, new tools and applications, etc. There is so much going on in the ecosystem right now that I think the value is stronger than ever. It simply is not reflected by the price.
