Any new technology tends to go through a 25-year adoption cycle.
Where are We Today - Bitcoin Pricing??
It appears that the price of Bitcoin has finally regained some strength to $250 USD after being beaten down to around $177.00 USD...A huge loss compared to $1100.00 USD just 12 months earlier.
However, between Jan 15 and Jan 25, the price has increased 140% to levels of approx $248.00 or nearing the steady range territory of $300-400 per BTC.
It also appears that the market capitalization of Bitcoin has fallen from very high levels of $8B to approx $3.4B right now.
So why did the price of Bitcoin fall so dramatically in the past 4 months?
Based on information collected around the internet...Here are a few theories: Confidence in digital currency is waning, Bitcoin is still waiting for it's "killer-app", the popularity of mining is being aggregated to large companies and squeezing the enthusiast out of the market.
Any of those theories are entirely plausible and for many of these reasons, it appear the interest in Bitcoin is waning.
Therefore we will reiterate our unfortunate mantra....What does the future hold for Bitcoin pricing...It appears that Bitcoin continues to find stable pricing.
Bitcoin Network Capacity
The Bitcoin network capacity is 299 PH/s and was 282.5 PH/s four months ago. Over the past four months, this a major indication of significant slow down and close down of mining hardware investment.
So how has this mining investment impacted the difficulty? The Bitcoin difficulty has stabilized around 40 B difficulty as the economic cost to bring on new mining hardware appears to be much higher than previous points in Bitcoin history.
However, from a brief analysis it appears the average difficulty increase is slowing from 120% previously to very stable single digit updates.
Will this encourage more mining and banking investment? Time will tell.