Bitcoin Price Continues to Fall as More Merchants Accept Bitcoin than Ever Before!
The Bitcoin price has been falling lately, and everyone is trying to figure out why. Over the past 17 months, the price has fallen steadily. However, this doesn’t signal the death of the currency like many people would initially expect. With the fall of the Bitcoin price, the transaction volume on the Bitcoin network has actually doubled.
This means more people are buying and using Bitcoins for purchases than ever before. So, while the price of Bitcoin falling is bad for speculators, if you simply want to use the currency, then having a low Bitcoin price is great for you. Essentially what has happened is that early on in the lifecycle for Bitcoin, there wasn’t very many ways to accept Bitcoin payments. So, if you bought Bitcoins, you pretty much just had to hold them.
Now that there are many places to spend your Bitcoins, many people are taking advantage of the fact and are starting to spend their coins. BitPay has over 100,000 merchants around the globe registered to accept Bitcoins. If you want the Bitcoin price to go up, there is still some hope for you. The Bitcoin price is slated to go up in 2016, when the next Bitcoin reward halving will take place. Essentially, there will only be 12.5 new Bitcoins created every 10 minutes instead of 25 Bitcoins as it currently is. We can expect the Bitcoin price to increase if the transaction volume goes along with it.
Although the Bitcoin price may be getting lower, there is still a lot of money being invested into Bitcoin with around $229 million being invested into Bitcoin startups so far this year. There was only around $144 million being invested in Q4 of 2014 in comparison. Despite all of the setbacks in 2014, the Bitcoin price is still going strong. There has also been an uptick in people seeking Bitcoin related jobs on the Coinality job board.
As far as what people are spending on Bitcoin, many people are using their Bitcoin to invest in other investments such as precious medals. As always, e-commerce is a strong category as well. Late last year, some of the major travel companies such as Expedia and Destinia also started accepting Bitcoins. At this point, it’s never been a better time to get into Bitcoins despite the Bitcoin price falling somewhat.
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