This is how bitcoin slowly dies from here. What started as a chance for everyone to generate their own bitcoins and participate in the economy now turns to a few data centers producing bitcoins thus forcing new users to purchase new bitcoins from them. We've traded fiat currency controlled by a few central banks to bitcoin controlled by a few data centers.
Meet the new 1%. Slightly different to the old 1%, but they're still there.
Meet the new 1%. Slightly different to the old 1%, but they're still there.
If this turns into a giant downhill snowball effect & miners decide to cut losses btc will be finished... Maybe with a new all time low
I've been saying this on the forums for a while. These are the idiots that need to be driven out for bitcoin to rise again. Until then, we will continue to go down. Any time we drop, more will have to exit to cut their losses, and the more exit, the more bitcoin value will drop... and that's the exact snowball effect that you're talking about. I wholeheartedly agree - it's inevitable.
I don't think bitcoin would be finished, but we will hit a new 'all time' low. Not early day prices, but I wouldn't be surprised if we get to $40-$50 by mid-2105. The mentality of basing mining businesses on the assumption that bitcoin prices will always rise - that mentality must die. That mentality is what keeps bitcoin from being treated as a currency, it creates an environment for encouraging scams, thefts, etc.
It's kind of ironic that this is in the Speculation forum, because I personally think Speculation is what holds bitcoin back.
Bitcoin is not currency its a digital collectible. It is the equivalent of a digital baseball card. A lot of people around here dont see that as a problem, but if your goal is mass adoption or price stability it's a massive problem.