Bitcoin's Self-Regulation Put To The Test

Bitcoin dipped below $200 over the weekend, causing many to worry if a mass exodus from the currency was on its way. However, proponents of the cryptocurrency say the system is designed to self-regulate, and that it is only a matter of time before it will get back on track.

Miners Will See Relief

Several mining companies last week announced that they were suspending operations as the cost to create the currency was higher than the price it was being sold at. Many are shrugging off the closures though, as bitcoin software allows for changes in volume by reevaluating the transactions and adjusting the difficulty of mining new bitcoins accordingly. It is expected to take the system about two weeks to recalibrate the difficulty and ease the pain on mining companies.

Related Link: Cryptocurrencies May Be Down, But Blockchain Technology Is Still Hot

TNABC

On Saturday, The North American Bitcoin Conference reinforced the idea that bitcoin’s recent slump is nothing to worry about. Industry experts and Bitcoin-based businesses gave the matter little thought, only commenting that a stable price was not the most important aspect, and that the wider aim was to develop technology that will allow wider adoption.

The conference addressed several problems that the industry is facing from a lack of technical support to security issues, but none of the startups present made much mention of the currency’s volatile price. 

What’s Next?

Moving forward, bitcoin enthusiasts don’t expect to see prices rise to the levels seen early last year any time soon, but they also caution against watching the currency’s movements too closely. Instead, bitcoin investors say the hash rate and difficulty chart are the best gauge of the currency’s progress.