Surely there has to be a reason why numerous big companies like Dell, Microsoft, Overstock, Amazon and many others are still confidently accepting Bitcoins as payment for their products and services. Still there are many skeptics at the moment who are sure that Bitcoin has no future and is not worth mining at a value in the region of $250. And you really cannot blame them because on the surface of things there seems to be a lot of evidence to back their position.
For starters the fact of the matter is that Bitcoin lost over 60 per cent of its’ value in the course of 2014. Its’ value has a direct implication on mining viability. Even more dramatically this digital currency quickly lost another 30 per cent in the first few days of 2015.
Then there is the fact that most experts agree that we are now close to the price tag for the currency where it is no longer worth anybody’s time and effort to process Bitcoin transactions let alone mine it. It is therefore hardly surprising that the camp that sees no future in Bitcoin has grown exponentially in numbers in recent times.
Focus on Bitcoin Mining
There has been a lot of focus on the mining side of Bitcoin in recent times. More so when cloud mining operations of Ghash were suspended. It has even been widely suggested that Bitcoin mining can easily lead to financial ruin. However there are those still mining and most agree that for it to be unviable the price would have to permanently slide well below $200. Admittedly this is something that can easily happen at any time but is yet to actually happen.
However the first question we need to ask ourselves is if this sweeping judgment on the future of mining based mostly on its’ current price is fair. After all we have seen many other currencies plunge in an even more spectacular manner and yet nobody has been quick to start writing its’ obituary. Yet it is also true to say that the Bitcoin price swings over the past few years have been erratic and seemingly without plausible reason.
Still proponents of Bitcoin have stuck to their mantra that it is not a currency that is printed by a sovereign nation and this is sound enough reason to make it a sure bet for mining and investment over the long term, even if there are initial losses. This is probably the reason for the earlier Bitcoin surge which was pure speculation based on this school of thought. However speculators are hardly the patient type and that could explain the current woes of the digital currency. Chances are high that it initially climbed too high and too fast purely on speculation. If this is true then it may be safe to say that this is a currency that is rapidly approaching stability. Even if there are no signs of that anywhere in the horizon at the moment.
Add to that the compelling facts on the ground. Firstly Bitcoin is far from being dead. And despite the numerous prophets of doom obsolescence still looks highly unlikely.
Method Of Payment And Not A Currency To Speculate On
Probably one of the most convincing arguments in favor of Bitcoin mining is the fact that is a method of payment, an ecosystem if you like. If it were strictly this, then it hardly makes any sense for anybody to turn it into a speculative currency for investors. This would be to totally ignore the Bitcoin strength and reason for its’ very existence which is a transaction tool and network.
2012 Investors Still Comfortable
It is also a fact that anybody who heavily invested in Bitcoin towards the end of 2012 would still be sitting on huge gains. For long term investors the truth is that there is still no good reason to jump ship or panic. If anything a future steep surge is a high possibility more so with the current unprecedented instability in world financial markets based on easily printable currency.
So far all the sweeping predictions that have been made on a popular website that focuses on Bitcoin obituary stories have been proved dead wrong. The numerous predictions of the final bow for the digital currency have not come anywhere close to happening. This would clearly suggest that it could be a huge mistake to support any theories that suggest the end of Bitcoin or its’ mining.