There has been a lot of speculation lately as to just what is happening to the Bitcoin industry. After “the rise and rise” that we experienced for nearly 2 years, we’ve now been in a bit of a Bitcoin rut for the past 14 months. Since the infamous collapse of MtGox, the price of Bitcoin has continued on a gradual downward spiral, down to the current low of $235 USD where it sits today.
Meanwhile, for those who prefer to disregard the current price, while instead opting to focus on other areas of the Bitcoin economy, it would be hard to convince anyone that the rest of the Bitcoin economy is performing much better. Direct investment in the Bitcoin ecosystem (ignoring other blockchain type projects), is down, while merchant adoption seems to have stalled, if not begun to retreat. Just today, the top post on the Bitcoin subreddit is about how a pizza chain in Germany no longer accepts Bitcoin. We found this to be a somewhat iconic moment, given the whole history with Bitcoin and Pizza. Also on the merchant acceptance front, Bitpay has recently laid off a portion of their workforce, cancelled the Bitcoin Bowl and reduced their once aggressive push towards global merchant adoption.
Lastly, one area that is hard to measure, but is definitely easy to see through anecdotal evidence is the general sentiment within the Bitcoin industry. Unlike days of past, where Bitcoin forums, Reddit, meet ups and other Bitcoin groups were booming, there seems to be a lack of interest in Bitcoin. Local meet ups are attended only by the same hardcore Bitcoin enthusiasts, the number of conferences and attendees has declined, Bitcoin businesses are failing, and the general sentiment is grim.
Here at The Coin Front, we believe that this is just a temporary (although prolonged) lull in the overall adoption of Bitcoin and its eventual rise to global currency dominance and acceptance. However, until Bitcoin overcomes its current issues, including the max block size issue that we recently discussed, Bitcoin is likely to remain stagnant, frozen at its current stage of development.
Jun 14, 2015