One: Bitcoin has been stuck for a while in a sort of ‘deflationary spiral.’ This means that commercial adoption by companies like Microsoft and Time has kept Btc’s price DOWN: no one wants to sell at this price coin that they (a) paid more for, and (b) can clearly see will rise greatly in value.

The Mining Thing – whereby miners tend to sell now rather than later (to pay for electricity) – remains an aspect.

Two: ‘diffusion’: there is an amazing and long-awaited change underway. It used to be the case that, as Bitcoin’s price rose, the price of ‘altcoins’ – all other cryptographic currencies – rose even more (and vice versa).

During The Big Spike, in late 2013 (though you won’t find this stat in ANY articles beyond the crypto sphere . . . ) Bitcoin’s market-cap fell to about 75% of total crypto-cap.

Today though – with Bitcoin at a low low price – almost 20% of total crypto-cap is in altcoins.

IndiaMikeZulu expects this shift to be permanent.

Check Ripple (Nos. 2 here: http://coinmarketcap.com), which is now in use with a growing number of fiat-currency banks, rising in price against Bitcoin’s falls, and showing significant trading-volume.

Check Paycoin -- https://hashtalk.org -- a coin that comes with its own ‘credit card,’ and whose acceptance with Amazon, Wal-Mart, Target, and Macy’s was pre-arranged.

And I will provide further detail on ‘appcoins’ like Gems (http://getgems.org) and Nxttycoin. Gems is still in pre-release mode. Nxttycoin seems to be a failure (IndiaMikeZulu held high hopes . . . ) – but the PRINCIPLE, that of connecting the world of smartphone users to the world of cryptographic currencies via a combined-crypto-wallet-and-crypto-‘economy’-and-user-support app for smartphones has IMMENSE potential.

And there’s Unobtanium (my home-coin: https://bitcointalk.org/index.php?topic=527500.4860). The Unobtanium community is bringing to bear a range of related developments that – tiny step by tiny step – are giving this ‘crypto-commodity’ price-independence from Bitcoin/general crypto-price trends.

Three: cryptos and the GFC:

Check this article: http://www.reddit.com/r/CryptoMarkets/comments/242i41/crypto_prices_and_the_global_financial_crisis

There is a growing awareness within the crypto-sphere of just how much money could find its way into cryptos as things get ugly, though it’s accurate to note that attitudes vary among crypto-tribes. For example, Dogecoiners are not so ‘political’; but the coiners of, for example, the ‘dark coins’ and Unobtanium are.

Conclusion:
the degree of commercial adoption in 2014 has put paid to Professor Know-Nothing’s offensive pontifications about ‘ponzi schemes’ and ‘no intrinsic value’ and ‘selling crack to children at the schoolyard gate.’

And right this very second is ‘Cheap Acquisition Opportunity Number Two.’ Cryptos – no longer just Bitcoin! – will break free from the deflationary spiral in a day or a week or perhaps a few months – and then they will never again look back.

Mark Blair

Mark Blair has a solid background in devolutionist political theory and activism. He and Ian Ridgwell and others are ‘IndiaMikeZulu.’ Mark is ‘IMZ’ at:
https://bitcointalk.org/index.php?topic=527500.4860

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.