The Bitcoin Boom Slipping Further Out of Reach?
The recent news that Silk Road Bitcoin has moved to Coinbase has a lot of Bitcoin enthusiasts worried about what possible price decline could come in the near future. If you don’t remember, Silk Road was the Wild West of the crypto-verse, where you traded in Bitcoin for, let’s say, “products of leisure”.
The idea of the Silk Road was to provide space for anonymous trading outside the traditional banking system. It was a major player in the Bitcoin market, with massive amounts of the digital currency being bought, sold and exchanged on its platform.
Now, these coins are all making their way to the big players, which could mean a decrease in the value of Bitcoin. There are a few pros and cons to this shift:
The Pros
- Crypto market could stabilise: With the big players holding a large number of coins, it means that the value is more likely to stabilise.
- Taxation: Having all transactions go through major players (like Coinbase) means that there’s more uniform taxation on the purchases.
- More secure: Spreading the coins among the major players means there’s more security surrounding their use.
The Cons
- Price decline: The movement of coins from the Wild West of Bitcoin trading means fewer coins in the free market, which potentially may cause prices to go down.
- Uncertainty: With coins being held by large players, there is much less certainty surrounding the price of coins.
- Power imbalance: With the big players holding so many coins, there is a fear that they might have a bit too much control.
At the end of the day, it’s hard to say what this shift could actually mean for Bitcoin. It’s clear that the Silk Road coins have gone to more secure places, but will it lead to the long-awaited Bitcoin boom, or could it mean even more price decline? Only time will tell!
