Over the past year, the bitcoin landscape has seen dramatic changes.
In the beginning of 2015, the price of Bitcoin was $313.92 and today a quick Google search gave me a price of $456.26. That’s an increase of about 45.34%. But this article is not about the price of Bitcoin, this article is about why the last bubble popped and why this “Rally” hasn’t yet begun.
The Bubble of 2013-2014
In his article titled Bitcoin Analysis Bubbles of the Past and Future by CCN author Joris De Ruiter, the author argues that every bubble gets smaller and that this may be a signal that Bitcoin is becoming more viable as an economic vehicle. I tend to follow this line of thinking but diverge at the idea that Bitcoin won’t have another parabolic rise. The 2013-2014 bubble had many contributing factors pulling support in many different directions, here are a few factors (mostly overlooked)
- The Birth of the ASIC Mining Industry
This is often overlooked and even less discussed but, I feel this has to be addressed.