Recently I have heard a lot of stories about how bitcoin is dead or that it is “dying.” It isn’t true and most people that do not take the time to learn about bitcoin will find it much easier to grab at national headlines, then to actually do the research and find out the truth.
Instead, I wanted to point out some things that might help clarify the thought that bitcoin will be dying very soon.
- Bitcoin’s price is falling. That means it is about to be worth nothing.
This might appear to be true at first because with other currencies that are backed by a central government, that happens because the central government that backs the currency has some serious problems that is causing the currency to inflate at record speeds. Bitcoin doesn’t have any kind of central authority, so this doesn’t apply. One reason it might be falling is that all the people that are nervous about bitcoin and don’t know as much about it as other people – get spooked and then when one bad story comes out they sell all of their bitcoin. This could be happening to a lot of people and it just so happens that there might be more people selling than buying at this point in time. There are probably a hundred different reasons like this. But once all of those people stop selling, the larger amount of people will begin buying up at a lower price so the price will turn at some point. (Right now I am saying it will take about a week, but I am not financial expert.)
2. Bitcoin has issues that are going to cause it to collapse.
Yes bitcoin does have some issues. The article points that out. However, I think airing dirty laundry in public was a really bad way to go for him. He could have chose not to release a bunch of negative press for bitcoin, but of course he wouldn’t do that. If a human has a choice between getting attention and not getting attention, most will choose the first.
All of the issues with the block size (and the disagreements) are not as big of issues as people say. Yes the blocksize needs to increase, but it isn’t going to stop working if it doesn’t. It will just take longer for transactions to process. I myself am OK with waiting a little bit longer for a transaction to process, if it means having more security and more flexibility than any other alternatives. (banks)
3. The price is going to keep falling and everyone will see that and will abandon bitcoin.
Certain people want bitcoin to die. Then they can have their “i told you so” moment. Little do they know, btc would have to reach 0.00000001 before it would get to that point (actually 0.00000000) and even before it got there, there would be so many hardcore believers – like myself – buying that shit up so fast the price would be forced to rise. And all of this would have to be looked at from a time perspective. The price dropping would happen over a few weeks or months – not years. SO in that context, the few of us that buy up large quantities of bitcoin would then just hold on to it until the price began to rise again.
Continuing on this hypothetical scenario – the price could stay in the pennies for years even – but due to its nature and protocol, it already has the framework built and miners would continue to mine it based on the same theory. So based on miners alone, there would be a majority of miners that would continue to mine because the difficulty would be lowered as miners left which in turn would cause the remaining miners to begin to gain more and more bitcoins each day. (Even after it halves, its still 12.5 bitcoins every 10 minutes.)
In fact, there would be more miners joining because it would be easier to get bitcoins. (It would become more efficient to get the reward.)
The nature of bitcoin involves the currency as the reward, the network as the structure, the protocol as the framework and rules, and the miners as the security. It is the circle of life and it keeps moving day after day while still be attacked. And it is surviving those attacks. As Andreas Antonopoulos said, it is the cockroach that keeps surviving and it becomes stronger by the day.