Bitcoin will reach $10,000. But when?
As of today, in the year of our lord 2017, several parties are battling it out for control of Bitcoin.
- Core Developers (the team that has current access to update Bitcoin code) has declined all requests for improvements to Bitcoin code. Result: Bitcoin has not evolved.
- Bitcoin Unlimited, SegWit etc. Groups that insist Bitcoin change code to accommodate new capabilities ASAP or Bitcoin hard forks (hard fork means Bitcoin splits in two, similar to GOOG and GOOGL, except one version would eventually die).
The result is a stalemate and frustration. Some of the smartest people on the planet are hurling infantile insults at each other via Twitter. An example:
@MrHodl fuck your mother if you want fuck.
— Jihan Wu (@JihanWu) May 15, 2016
Fuck your mother if you want fuck. Indeed. T-shirts with this quote are now available online, naturally.
Things are not as they seem though. This battle isn’t about who can update Bitcoin software. It’s much bigger than that. This is about who will control the primary digital economic asset / store of value of the future.
Will the real Satoshi Nakomoto come forward and set right his wayward vision for ‘Peer to Peer Currency’? There are rumors…..
As if that’s not enough drama customers of Bitfinex, a major Bitcoin exchange, have been having problems withdrawing cash due to “banking issues”. As a result users have been buying Bitcoin at Bitfinex so they have access to withdrawing funds via Bitcoin to circumvent the “banking issues”. This buying pressure has caused a dislocation in price. Bitfinex price for Bitcoin has run as high as $100 higher than other exchanges. This dislocation has dragged Bitcoin price upwards across all exchanges. When the Bitfinex problems are resolved (I expect Bitfinex will implode) what will happen when that buying pressure disappears. Even more important, what happens when casual Bitcoiners see their investment fall 20%?
Even with those issues, Bitcoin continues to rise in price. A correction seems overdue (even welcome) by many. Including me.
I’m still long.