I am the first to admit I thought the price of bitcoin would shoot up high after the block reward halving. Afterall; this is a once in 3 to 4 year event which causes the incoming supply to cut in half immediately.
On the last halving day 4 ½ months less than 4 years ago (November 28, 2012) the price was a bargain $12.22. By January 2013 it was in the $17’s and by April topped out around $200 for a brief period before settling between $60 and $120 for a few months and a skyrocket to $1,000 by the end of 2013. Late Summer early Fall 2013 would be the last time you’d see bitcoin anywhere near the $100 mark.
If this price trend serves us as a guide, and I admit bitcoin is much different in it’s prescience now than it was then, we may just see another star-shot or at least the start of one by the end of 2016; especially with so much world financial and geopolitical chaos being triggered. From my research and light analysis since 2012 it tells me that when we see ‘long’ periods of sideways action (flat price) like we do now since the halving, this is most likely a bullish symbol from the price ready to spring up higher fast. With the bitcoin difficulty finally going to lower by August 3rd with unprofitable miners dropping out due to the reward decrease, maybe we’ll finally start to see the price rising then.
Of course this is not necessarily true. Something else I was thinking of recently in terms of the philosophy that mainstream has toward bitcoin (yes I know, only early adopters have go tin so far) is the mainstream is not of the right mindset to get into bitcoin…it’s not just the technical hurdles holding them back. The philosophy is that of how do you know when to trust a digital currency? My main hypothesis was that they won’t be able to trust bitcoin until they realize that, for US Citizens at least, the US Dollar IS a de facto digital currency and exists mostly in computer systems online. I believe your average person still feels a connection that America’s currency is a physical object, because the most prevalent representation of it is a physical paper-like bill. Once enough people realize its a digital asset printed at will, they will remember bitcoin and how it’s also digital and yet not controlled by the same psychopaths and will therefore look so much better as an ethical and more advanced digital currency.
To explain the deep meaning of the block reward halving and the hopes and expectation of 3 bitcoin experts; watch CrushTheStreet.com’s recent interview below:
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