Cryptocurrency

Bitcoin comes of age

Published on July 27th, 2016

The halving, which is decided by an algorithm, went off without a hitch and hardly touched the trading price of Bitcoin showing, once again, that Bitcoin is stable, predictable and a force to be reckoned with. It was also the best performing currency in 2015.

Many startups that were looking at working with Bitcoin, Ethereum, and other Blockchain technologies have now received further affirmation of the technologies’ viability and strength.

There was the concern ahead of the halving event that reduced rewards would dissuade many miners from continuing their operations. Miners not only generate new Bitcoin by processing fresh blocks on the Blockchain but also process transactions in so doing. Without miners, there is no Blockchain and the possible consolidation that could occur from lowered incentives would be bad for a decentralised system like Bitcoin.

A successful halving shows maturity in the cryptocurrency industry and further cement the role of the Blockchain in decentralising and revolutionising all trust-based endeavours.

The growth and stability of Bitcoin have also caused more interest in the market where currencies face uncertain futures and we’re seeing traditional safe-havens like gold begin to pick up in value. Bitcoin, as a deflationary asset, has also proven an effective hedge against currency volatility.

Entrepreneur and board-member of the Bitcoin Foundation, Vinny Lingham is famous for his commentary and predictions surrounding Bitcoin. In a post before the halving, he highlighted the need for stability in price.

“Keeping the Bitcoin price stable is imperative in order to surge past the previous nominal all-time highs at some point this year,” said Lingham.

“Volatility is not good for any asset — up or down. This is, unfortunately, a reality, until we move to a place where large trades can’t move the market.”

Another positive aspect of the halving is that it has put pressure on many questionable schemes that have used bitcoin to confuse and mislead consumers. Lingham agrees that these scamsters face a tough future.

“I think halving day is going to help us flush out Ponzi schemes, dubious cloud hashing farms, bitcoin scam artists, poorly financed mining companies and miners along with a range of other bad actors in the bitcoin space — they exist and they are taking innocent/uninformed people for a ride,” said Lingham in his post on Medium.

“This will likely bring bad news to Bitcoin temporarily, but it’s going to be like a new broom sweeping clean or a recession in a hot economy — it’s always good for the long term.”

At the time of writing this article, Lingham’s predictions that the price wouldn’t see massive changes after the halving have proved correct, with Bitcoin showing remarkable stability, given its tumultuous past. The currency, and the Blockchain technology that it is intrinsically linked to, has come of age.

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