Can an Increase in the Block Size Push the Bitcoin Price Higher?
Following a spike that brought the bitcoin price beyond the $600 mark, the market temporarily stood at $626 before dropping to $619. A little disappointing, but bitcoin is still better off than where it was just a few weeks ago, and the currency is showing no signs of slowing down in the coming days.
Bitcoin Price and Scalability
“We got what we were waiting for. Price broke through our predefined resistance level, and – something that we’ve not seen in a while – we got a sustained run-through to take out a profit target almost immediately. This bodes well for today – we will likely see something of a near-term correction as the shorter term speculators book profits on the move, but beyond that we could easily see a return to the upside and another opportunity to get in and out of the markets on a bullish entry.”
According to one source, effervescent bitcoin evangelist Roger Ver is at it again, claiming that bitcoin will eventually reach a worth of $100,000. A bold statement indeed, but Ver joins several mainstream figures and suggesting an increase in block size, although the prospects of a potential increase aren’t as simple as they look:
“Bitcoin is surprisingly difficult to scale if we are to retain its degree of decentralisation and censorship resistance. Do we compromise the value of the thing itself for the sake of making it more popular? What is the objective gain of such a compromise? Ver does not address this point in his recitals, nor does he answer direct questions about the implied dilemma.”
At first glance, it would appear that a block size increase would allegedly cause the bitcoin price to drop. Increasing something’s proportions only makes it larger and more accessible to everyone. The rarity it once possessed dissipates, along with levels of its value.
But as the recent halving has shown, this isn’t always true. Everyone was certain that the halving would cause bitcoin to legitimately rise beyond the $1,000 mark without the “aid” of market manipulation. Not only did this not occur, but an attack on Bitfinex was all it took to cause the price to sink rapidly soon after. The theory of size appears solid when in actuality, it tends to be circumstantial.
Either way, the word is out that bitcoin is rising to the top, and will likely do so for some time:
“It may not look like it, but Bitcoin is in an advancing trend toward $680 and beyond. Remain patient as the majority of the market comes around to the notion.”
How long will it be before bitcoin hits $680? Post your comments below!
Images courtesy of Bitcoinist, rogerver.com.