Only hours remain before the widely-expected Bitcoin network’s SegWit activation and its anticipated fork. Expectations were very high of some panic-motivated reactions ahead of the Aug. 1, 2017 deadline.
Contrary to these expectations, there seems to be reasonable calmness within the Bitcoin ecosystem(at least on the surface, as reflected by price action).
After falling to below $1,800 in the middle of July, Bitcoin price has recovered to be trading around $2,700 as at the time of writing.
But more significant is the overall market behavior which is expressing relative calmness as price movement are less volatile than is usually experienced in seasons of anticipation.
This is a short-term disruption
CEO of Never Stop Marketing, Jeremy Epstein thinks that the current market behavior is as a result of the growing confidence of Bitcoiners about the technology as a long term phenomenon.
Epstein tells Cointelegraph:
“I think that the reason for a relatively stable market at this time is the fact that more and more people are getting comfortable with the idea of Bitcoin over the long-term. They realize that this is a short-term disruption and it is a feature, not a bug, of the way that the system operates. As a result, people are playing patience and they recognize that the age of decentralization is truly upon us so they can tolerate some of these challenges in the near term.”
One aspect of the Bitcoin ecosystem that has grown significantly is the understanding of the technology by its users in concept, application and market behavior.
The rate of growth in terms of awareness within the crypto ecosystem has become very significant especially in 2017.
Despite the low rate of formal education within the industry, participation appears to be a fundamental educational element among crypto users. Some have grown through trial and error, while others have learned the ropes by following the steps of those ahead of them.
Whichever way, there is a higher level of clarity among Bitcoin users about the technology as a whole.
CEO of Netcoins, Michael Vogel believes that the relative calm being experienced in the industry ahead of a major decision is due to the outlook of Bitcoin users.
Vogel also notes that the actions of the exchanges may be significant in influencing how Bitcoiners perceive the process.
“SegWit activation is largely viewed as positive news for Bitcoin. And although I believe the Bitcoin Cash altcoin fork will be a footnote in the long run, there's less worry among the customers that I've been speaking with. Even if there is a negative effect on BTC price after a fork, one might assume there would be a positive effect on the BCC price (and vice versa). That being said, with most exchanges choosing not to carry BCC, that has given many Bitcoin users the clarity that they've been seeking about the future of Bitcoin.”
Bitcoin as a decentralized technology will undergo several stages of development.
Having survived the initial setbacks of its early days, it has grown significantly over the last few years both in volume and market capitalization.
With the increasing level of awareness and understanding that is prevalent in the industry, it is safe to assume that in the long term Bitcoin will form a significant part of human existence.