has had a rough year and even if this is a temp relief rally and we make the ultimate lows in the summer, some positive signs are badly needed for the space.
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Good luck traders, I usually tweet these out instead of publishing, still trying to figure out the best way to reach readers/followers.
The price of a bitcoin DID hit exponential grow and with it the Mining aspect structure hit exponential grows with a lot of money flying in. As the price comes down, Bitcoin Mining operation get stressed. Last time the price was in the Teens, a lot of people were mining at home, now that is impossible. Everyone is already complaining that mining is becoming monopolized/centralized and the lower the price gets the higher the chance for this trend to continue, with more people complaining how the system is unfair.
None profitable btc mining will shut down, and will be purchased for pennies on the dollar by the more efficient miners or those that are heavily subsidized... as a free market guy i don't mind efficient companies buying none efficient ones, but for example the btc mining farms in china have their biggest expense of electricity subsidized by the government and that is not efficiency, that's just a regional advantage.
I think you get the point, also see the long reply below talking about 'confidence'
The biggest positive i have found being around the btc space is that once a person understands it and uses it once or twice, they realize it's the best thing in the world. But those that invested in it as an asset do not see that. Also all those merchants that are now accepting it might lose interest as less people use it as the price of one btc drops and people are getting poorer (in terms of btc net worth). If Merchants start dropping out cause many don't care about this tech revolution, this would be a huge confidence hit to the system.
I'm also talking to a few people in asia and banks like HSBC don't want to provide business accounts to those who simply want to accept btc for good/services (not even btc companies), this is also a big deal.
In this game of confidence there might be a point where it is a lot harder to recover from, if btc was just an asset this would not matter, but we want it to be more than that, and confidence in the stability of that asset is #1 priority (just look at the US Dollar, Global confidence is taking it to the moon), the currency side of BTC is no different.