While Bitcoin has endured a wild ride over the last few years, the last 12 months especially, bringing considerable derision within mainstream media circles, recent events, dramatic though they may often seem, are proving conclusively that Bitcoin is maturing, and become much more resilient to setbacks than was the case even a few months ago. If Bitcoin was not meant to be anything other than a passing novelty, then it surely would not have withstood these tests of endurance and acceptance.
There have been numerous trials and tribulations involving exchanges, indecision and confusion amongst governments, threats of regulation, software issues with the Bitcoin protocol and much more, all of which have conspired to shake the foundations of Bitcoin, but not deflect its inexorable progress.
For every negative event that has the potential to halt Bitcoin in its tracks, there are many more positive events to offset them, underpinning both the Bitcoin price and its future as the de-facto digital monetary system.
With all of the ongoing background noise currently affecting Bitcoin such as the ongoing and as yet unresolved Mt. Gox situation, here are just a few of the factors that are supporting the Bitcoin price and stability.
Investment: Hundreds of billions of investment dollars are being poured in to countless Bitcoin start-ups, including by some extremely prominent and technically expert investors. Many of these investors have been around since before the “dot com crash” and have seen it all. They are also savvy, wise and experienced enough to know a good investment, unlike the reckless casino style investing and the end of the last millennium.
Government attention: While attention from governments and talk of regulation is most definitely unwelcome for Bitcoin, and ultimately irrelevant anyway as Bitcoin matures in to a global force in its own right, as the Internet did, the fact that governments are actually taking at all is proof enough that they are taking Bitcoin very seriously, and not just some latest geeky quirk or fad that will fade away by itself.
Financial analyst bashing: When “financial analysts” and major banks feel the need to attack something, then it is sure sign that they feel their little empire and security is threatened, as well they might. They make their ill gotten gains from activities that would be criminal for anyone else, including but not limited to bribery, corruption and manipulation, all based around raking in billions of in fake, worthless Dollars and other fiat currencies, and fake financial instruments such as derivatives. Bitcoin could and will put an end to all that, and the analysts and bankers know it. There game will be up and they will have to make an honest living – if it is in them to do so. Perhaps this is one reason why recently J. P. Morgan senior bankers have progressed from shouting from the rooftops to jumping from the rooftops.
Goods, Services and ATM’s: Every day more and more shops and services are accepting Bitcoin as an alternative to fiat currencies. At the same time it is becoming more and more convenient to convert fiat currencies to Bitcoin through the numerous Bitcoin ATM’s that are mushrooming all over the planet. Growth of Bitcoin was always linked to availability of goods and services accepting Bitcoin, except for speculation, and vice versa. Bitcoin is rapidly reaching critical mass, and once enough good and services accept Bitcoin, so shoppers can keep and spend money in Bitcoin, it will take off exponentially. This is similar to the early days of the Internet where people connecting was linked to the availability of websites of interest to connect to. Bitcoin will evolve exponentially like the Internet itself.
Resilience: This is one of the most impressive and obvious indications that Bitcoin is maturing. Notwithstanding numerous and ongoing setbacks, which are to be expected at this stage in the evolution of Bitcoin, such as Mt. Gox, Bitcoin transaction malleability, ongoing threats of regulation, ongoing debacles such as Silk Road and Silk Road 2, the Bitcoin price has remained remarkably stable. Users, investors and the community has remained stalwart and solidly behind Bitcoin.
If Bitcoin can survive these ongoing storms and move forward stronger than ever in every respect, then its future is assured. Nothing can prevent the rise of Bitcoin now, just as nothing could prevent the rise of the Internet itself, despite its modest, shaky and often dramatic beginnings before maturing in to a powerful global resource of the people.