In the first weeks of January 2016 a leading Bitcoin developer Mike Hearn announced to the world that Bitcoin is dead and broken. In his article he talks about how the community has failed and how the Blockchain technology can’t reliably handle too many transactions at once. He also mentions that the market is controlled by Chinese miners and just two miners control more than half of the entire hash power. Naturally this announcement caused a network wide panic as people were worried Bitcoin is done for good this time.
Bitcoin’s death greatly exaggerated
After the usual media shitstorm and Bitcoin selling marathon came along the CNBC and announced to the world that Bitcoin’s death was mostly just exaggeration and even though Bitcoin has been officially declared dead more than 90 times in its relatively short lifespan, the cryptocurrency will rise and continue moving forward just like it has always done.
Moreover, various conspiracy theorists claimed Mike Hearn to be a shill working for MI6 or some other major corporation, perhaps even the central banks. While unlikely, we can’t really rule anything out at this point because one can’t help but wonder whether Mike Hearn profited from the Bitcoin selling that he himself initiated. It’s quite possible that the first wave was in fact from his own Bitcoin stack which he dumped on the market.
Price stabile below 400 USD
After the Mike Hearn news Bitcoin’s value on most markets started to rapidly fall as traders were trying to get rid of a “broken” currency as fast as possible. Eventually the price found stability a little above $360 USD per Bitcoin and has since then been hovering in the sub 400 area for a month.
From the 2nd half of January until mid February 2016 the price of Bitcoin fluctuated systematically between $390-$365 indicating that the speculators were still around and hadn’t abandoned ship completely. The past month has been a very profitable time for the technical traders because of the market’s rather predictable movement.
Testing $400 on Valentine’s day?
It’s Valentine’s day today and interestingly the price of Bitcoin has just increased from $380+ all the way up to $399 within just a few hours. There’s just one more dollar to go before we test the $400 mark and things are looking very good right now. In fact at the time of writing this post the price has already risen to $399,7 quite rapidly so I believe we will see 400 in just a few moments.