A general view of the bitcoin booth at the 2015 International CES at the Las Vegas Convention Center in January. Photograph: Ethan Miller\/Getty Images<\/p>\n
Theres no reason to mourn the fall of bitcoin prices. Anyone who is crying over bitcoins recent face-plant losing one-third of its value in two days must be a speculator. Gambling is gambling sorry, pal. If youre celebrating the price drop because of schadenfreude, or just straight-up skepticism about the cryptocurrency itself, youre missing the point, too. <\/p>\n
The nosediving price of bitcoin matters in the short term because rattled confidence hurts any currency, especially a relative newborn that is only used to grease a tiny sliver of global commerce.<\/p>\n
In the long run, however, the price swings wont matter. The currency called bitcoin itself may not even matter.<\/p>\n
But cryptocurrency will, and likewise the technology underlying it. In a way, bitcoins wild fluctuations in price and coming through them onto calmer waters could ultimately illuminate the staying power and significance of cryptocurrency. <\/p>\n
First, though, the near-term doubt and skittishness catalyzed by the price drop: bitcoin has a reputation problem not only because its so young, but also because it lacks institutional credibility. <\/p>\n
The bitcoin faithful have argued that price oscillations are to be expected during these early years.<\/p>\n
As more investors get involved, and as bitcoins utility as a medium of exchange increases, it will theoretically become less attractive to speculators, thereby stabilizing in price.<\/p>\n
Yet it isnt clear exactly how bitcoin will grow if everyday people are spooked. The ongoing price volatility is a real barrier to wider adoption, at least on the consumer side, says Marc Hochstein, editor-in-chief of American Banker. That was true at $10 and it was true at $1,000. <\/p>\n
So yes, rattled confidence in the value of bitcoin matters, some, but this is not some do-or-die moment or comeuppance for the currency. On the contrary, its a blip, and a distraction from the meatier discussions about what decentralized currency is, and how the technology that powers it might influence our lives in the future. <\/p>\n
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The 'internet weirdos' of bitcoin are changing the way ...<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A general view of the bitcoin booth at the 2015 International CES at the Las Vegas Convention Center in January. Photograph: Ethan Miller\/Getty Images Theres no reason to mourn the fall of bitcoin prices. Anyone who is crying over bitcoins recent face-plant losing one-third of its value in two days must be a speculator Continue reading