So bitcoin’s price is going down, but I am arguing this is actually good for bitcoin.
Bitcoin is a slow, non scalable currency under ridiculous inflation that requires enormous amounts on energy to be wasted in order to keep a ledger going (that can be done in other ways).
This is actually good for bitcoin.
7 transactions per second. Clearly a sign that we are about to take over the global economy.
Scalability problems? Not a big deal. We can do a hard fork, even though it causes some
lunatics gentlemen to declare wars against lead developers (
http://trilema.com/2015/if-you-go-on-a-bitcoin-fork-irrespective-which-scammer-proposes-it-you-will-lose-your-bitcoins/) having to cause “risks” (said Gavin) and blockchain bloat.
But hey. This strong consensus on how to solve problems in bitcoin is actually good news.
Bitcoin has no chargebacks and no fees.
Who needs consumer protection right? Scammin’ with BTC is very easy, but
paranoia freedom above everything
even if the ones losing the money is us. Fees? Now fees are decently low, but as block reward approaches zero fees will need to be raised. We are dependent on the miners to keep the network up (even if other distributed ledger technologies don’t need that).
I am arguing this is actually good for bitcoin.
Speaking of miners, in bitcoin everything is decentralized, except for the very thing that keeps the network running and transactions to be validated. Mining centralization is
a big problem that undermines the decentralization narratives of BTC great.
In June GHASH.IO owned 51% of the hashing power, but hey! They literally said “TRUST US, we would never attack the network”! (
http://www.coindesk.com/ghash-io-never-launch-51-attack/)
After all, isn’t it great to be able to avoid having to trust anybody in a TRUSTLESS peer-to-peer currency?
Now hashrate is a little bit better distributed, but mining pools can form mining cartels and some pools can perfectly be owned by the same entities, and since the whole mining system invites centralization, there is no guarantee that the tendency long term won't be mining pools owning more and more of the hashing network.
It’s obvious that the mining industry has a bright future, considering a lot of miners are severly underwater with current depressed prices (
http://www.cryptoarticles.com/crypto-news/cexio-we-need-a-bitcoin-value-of-us320-at-current-difficulty-to-make-cloud-mining-profitable).
Ladies and gentlemen, this is actually good news for bitcoin.
The price has been on a downtrend for a year, having halved already three times since its all time high. Currently at around 70-80% from the ATH after a whole year of bear market, the longest in the history of bitcoin yet.
There is evidence that in the two previous bubbles the Mtgox bots Willy and markus played a central role.
But no worries, this is all good stuff for bitcoin.
We broke the previous bubble high ($260) that now seems like a target for the moon (while supporters cheer and scream “CCMF” for $200-$240 coins).
We have broken a long term trend line after 1 year of bear market close to price levels not seen for more than a year.
My friends, cheap coins. This is clearly amazing news for bitcoin.
The future looks bright. The winklevoss ETF is taking forever. The more times passes, the less likely the ETF will be approved (
“The longer it sits in registration, the less likely it is to launch” (
http://www.bloomberg.com/news/2014-12-22/bond-kings-bitcoin-and-china-exchange-traded-funds-to-watch-for-in-2015.html)), but good things take time right? Even if the coins in the ETF will not be insured in case they get stolen or lost (
http://insidebitcoins.com/news/the-surprising-and-blatantly-obvious-risk-of-the-winklevoss-bitcoin-etf/28489)
What about Second Market investment trust fund? It looks like currently, fund investors can’t liquidate holdings. Basically they are stuck
bagholding watching the price slowly fall while Barry Silbert is having fun (
https://twitter.com/barrysilbert/status/551533923663355904) and predicting the price drops to stop just before the next big crash (
https://twitter.com/barrysilbert/status/555137108126756865).
How can this not be excellent news for the future of bitcoin?
You can tell that bitcoin is the future because all enthusiasts talk about is
how many DOLLARS they are gonna get when they dump their coins the amazing returns that are gonna come with this disruptive technology for them while
sitting on their asses helping make the world a better place.
The quantity of venture capital investments is
only less than a billion worth massive, and historic examples like the dotcom bubble clearly shows that when early risky venture capital investments are involved, nothing can go wrong.
Bitcoin adoption cannot be stopped, all merchants of the world will soon be accepting
USD from a bitcoin dump through Bitpay while bitcoin whales who already own bitcoins get free towels at Overstock.com bitcoin and everyone will be using it for the reliable and stable store of value it is.
The world of bitcoin is so filled with amazing news and sentiment that lead developers and gurus like Andreas Antonopolous and Gavin Andresen are declaring bitcoin “dead as a get rich quick scheme” (
https://twitter.com/aantonop/status/555382361676734465) and selling coin holdings in order to buy stocks (
http://www.ft.com/intl/cms/s/0/9b27fb72-967f-11e4-922f-00144feabdc0.html), respectively.
I have no idea why not everybody in the bitcoin world would be less than enthusiastic about the future of this amazing
bubble technology.
All this is actually good news.
