The price of Bitcoin has been subject to a bear run lately, with the former 3-month running average around $300 being driven down to the current price of around $232.00.
The price has taken a few stumbles over the last couple weeks:
The recent activity has spurred a mini-sell-off, with higher than average trading volume, and one can easily see the large volume drop that occurred in the last 24H when the price moved from $250 to $230.
The Bitcoin Technology is undergoing a major change, and even many personal investors have received turbulence as the industry goes through another shakedown in prices.
It seems that many companies are still on the fence when it comes to Bitcoin, and the while concept behind having a decentralized currency is that no one could have control over it, and that it would be subject to market conditions, but many analysts are suggesting that the new improvement, or amendment to increase the blocksize to 8mb, will make it more favourable for large institutional investors, and bankers, who essentially control the stake of the currency.
The problem that many governments face with their currency is that it can be subject to destabilization be other currencies, and the problem that people have is that their money is often controlled by a central unit, like the Federal Reserve in the U.S., and other central banks, and commerce groups like the Euro Group. Some people and countries are looking to develop their systems around the Blockchain, and potentially use this new pioneering development as a means to gain intellectual and economic advantage over other governments, organizations, and people. This is happening across all levels of the Universe, since people all over the world are using this form of currency across the globe, and businesses and government are also using it freely, so many of the issues of scalability are being addressed by the increase to the larger Blocksize. One would think that the increase in size would essentially cause an increase in value of the coin, since it would favor larger transactions, even if there was a sacrifice to the amount of time the transaction took. However, even with increased wait times of up to a few hours, or a few days, having a secure protocol that can operate indistinct of other networks and communication protocol would certainly increase in value (assuming that security and protocol problems persisted into the future).
So what is everyone doing now that the price is back to $232?
Are we going to see LiteCoin pick up the slack where BTC left off?
Or, will BTC change its Bearish ways and make a Bull Run?