The year 2015 has been full of events for Bitcoin and the overall development of Crypto coins.
With a lackluster start which is widely seen as the aftermath of Bitcoin’s price peak in late 2013 and subsequent correction and price consolidation throughout all of 2014 and parts of 2015, the latter part of the year looked a lot more promising.
After initial price slumps and a suspected hard floor around the $180 level, the actual stability of that level has confirmed that Bitcoin’s price is not likely to fall without limitation but due to millions of participants and increasing use worldwide has matured to a degree where there will always be demand for the Crypto currency to support prices — first signs of a true economy having developed around Bitcoin (and other Crypto coins as well). The holding of the $180 level helped return confidence in Bitcoin as well as leading Alt coins and led prices to a steady recovery.
Crypto-related events also supported the turnaround which — due to its lower volatility than in the run-up to 2013 highs and more stable overall appearance — now appears to be quite solid. (Bitcoin Financial reported on that development in late summer and again after the more decisive increases in November.)
The use of Bitcoin by Virgin founder Richard Branson to pay for a new Virgin Atlantic aircraft was just one of the more exciting developments in the Bitcoin sphere. It helped demonstrating Bitcoin’s overall characteristic as an innovative and also economical way of doing serious business — Branson’s airline is said to have saved millions in fees on just that one large transaction using Bitcoin instead of costly and outdated SWIFT services.
In other news, large media outlets reported that Europeans sought shelter in both gold and bitcoins. The latter would add an interesting angle to the overall Bitcoin and Crypto coin market.
While precious metals continue to be the ultimate safe haven and only gold and silver are proven tools for storing value, it may or not be true that bitcoins and other digital currencies could be utilised in that process. It is generally recommended to rather use bitcoins for transactions and gold and silver for long-term storage of value but Bitcoin’s transactional advantages might even be part of such a strict Asset Protection strategy for the in-and-out movements of safe-haven investments (or in fact, many other asset classes as well).
Finally, the year 2015 saw further initiatives to promote the acceptance of bitcoins for regular point-of-sale use. The Island of Jersey is one of the better examples of a campaign to understand and get started in both Bitcoin and other Crypto currencies.
Bitcoin price developments throughout late summer and autumn 2015 suggest that the longer-term outlook for this and other established Crypto currencies may be a solid and consolidated increase toward the next price target, the 50% level of the long term price movement that began with the $1147 peak of 2013.
Whether or not necessary short-term corrections will appear to be painful greatly depends on overall economic developments outside the actual Crypto coin sphere. While violent downward moves are always reported as a bad thing by the mainstream media and also abused by incompetent politicians demanding price controls as an “answer”, it tends to be forgotten that this is not necessarily correct. Any price movement, whether up or down, provides trading opportunities. Media stupidity and political propaganda will not change that. Less dramatic price action would be beneficial to Bitcoin’s mass appearance — and hence wider acceptance and use — and might speed up this ingenious invention’s success though as it saves both time and energy educating politicians, “experts” in the media field, or the readers and watchers of mis-information to the obvious: that free markets always are balancing themselves and that Crpyto coins are now an integral part of free markets beyond government control.
That said, early 2016 is likely to see relatively slow Bitcoin price increases, if current short-term reversals stay within their expected bands. So far, Bitcoin’s price seems to have “played by the rules” (not of governments but technical analysis and free markets, that is). December has seen textbook price movements in Bitcoin and other Crypto coins and appears to confirm the view that Bitcoin has significantly increased its user base throughout 2015. As most any foreign exchange trader knows, that in itself would point to less violent price movements and possibly an overall subsiding of Bitcoin’s infamous volatility of the early days.