This morning i woke up, did the usual, got the kiddies moving, had a coffee, and checked my Crypto-accounts. updating spreadsheets, running Antpool’s (terrible?) luck, and looking at the day’s dividends i had a thought. Has technology been the current factor of BTC price? Antminer S5’s are the best in the world, for both commercial and personal use, both SHA-256 and Scrypt alg’s have been long “ASCI’d” . Now factor in 2014 being (imo) the “year of faucets, ponzi’s, hacks , and pump and dumps” and BTC being in EVERYONE’s hands (diamonds are not valuable if technology made them diggable in 3 feet of dirt in your backyard and everyone has one) are all these factors what is causing lower BTC price overall? and will it reach a “bubble” i next few months IF new tech hits? (or BTC goes mainstream). GetHashing has the most diverse smart community in Crypto so i figured this belongs here (mega thread?) i think the many branches of this thought can help noobs and the future community for sure (and hey lets see who’s right in their predictions in 6 months haha )
I personally subscribe to the mode of thinking that says increased merchant adoption will at least initially cause a drop in price. Since merchants pay almost all their bills in fiat, many that accept bitcoin are cashing it out at some point. This means there is a supply of sellers with relatively little increase in terms of buyers. Bitcoin is sort of still waiting for a buy pressure aside from novelty, pseudo-anonymity, and p2p (which is actually a zero net gain in terms of buy/sell).
There’s people working on exactly those issues as we speak
Btw, increased merchant adoption is only one part of the greater whole. The benefits will really start being seen when more of the supply chain gets involved. Convincing them to do so though will require the merchant adoption first. It’s all about infrastructure