Are Bitcoins still alive?
The incidents and arrests of the past few days have caused noticeable movements in the space of the bitcoins.
The incidents and arrests of the past few days have caused noticeable movements in the space of the bitcoins. The main reason for the recession can be should be called the “mistake” of Ross Ulbricht also known as Dread Pirate Roberts. Of course it should not be underestimated that the custody of the owner and launcher of the Silk Road should have understood the consequences of the criminal usage of any kind of currency – bitcoins have often been used for purchase of drugs, banned pharmaceutics, weapons, and many other illegal products and materials. The presence of BTC on the black market as one of the currencies should not impact the image of the bitcoins in general.
The analysis of the occasions as well as the overall prices of the last two decades shows that the situation should not be explained that simple and obvious. The close up of a segment of the black market – the Silk Road led to selling of BTG by users – both involved in speculations or just unsure about the further safety of the system.
The experts compare the situation with the breaking news from this year’s April. The service Mt.Gox has also been closed and this happening has led to the drop of the priced for the BTC by more than 70%. The current occasion has shown that the market got more stable and protected from such mistakes – the drop was not bigger than 20%. The prices already have been two times lower in comparison with the 9th April setting the all-best record in the history of bitcoins.
Statistics also indicate that the return to initial prices has been more fluent – the process did not cause a collapse even comparable to the panic raised by Mt.Gox.
Observing the mining velocity even beginners would notice a drop and a pull out of stocks from the process. Experts have a reasonable explanation - the long use of the system has led to smelting out of the hardware resources needed to be extended. The power is not enough to cover current and future operation volumes.
Another positive parameter is the amount of transactions – regular payments. The only drop determined during the last year is connected with a totally different service – Atlantis and its finish.
The mostly poor circumstance currently is the ownership of big amount of bitcoins by the US government. The FBI has initiated several operations during the investigation of the Ulbricht case. There exists a risk that the government might become a quit big player in the bitcoin system causing its dependence.
As it was mentioned above any currency might be involved in black market business and activities – it is not a fault or disadvantage of a system, especially such decentralized and independent as bitcoin. Honest companies as Coinbase and the growing BitBox have traced the growth of amount of payments.
As any fluctuating sphere, bitcoin and digital currencies in general will possibly relive many other similar occasions, but none of the experts would currently forecast any kind of crucial and fatal problems for the users or their funds.