Is the bitcoin price in long term decline.

At the dizzying heights of this time last year – gold and bitcoins if only for a short while were at parity. Since then bitcoin has gone on into what seems like long term decline – if its price is an indication of its popularity. Bitcoin took several blows in the last year when China took steps to distance its banking system from the currency. Then the silk road got shut down. There were several major bitcoin thefts. Then there was all that unpleasant business involving MT Gox. However, A little look at the statistics shows quite a different story for the future of the digital crypto-currency.

The following data has been extracted from the blockchain.info website and gives you some different picture of what is going on here.

Firstly lets look at overall market capitalization. It still stands at slightly less than half of what it was Рbut does appear to have levelled off.  This appears to me to be a natural correction to the bubble that was created by the frenzy surrounding bitcoin take up in China and media coverage last year. Screenshot (3)

The total number of daily transaction seems to show relatively stable and slow growth.

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If you exclude popular addresses it shows even more stable positive growth.

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The amount of unique bitcoin addressees also shows steady growth.

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Transactions in USD seem to have remained relatively stable.

Screenshot (7)

The price as we know hasn’t done anything positive for a long time.

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The difficulty of making new bitcoins continues to grow ever more difficult.

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The size of the blockchain grows very steadily. Doubling in one year. However, the growth seems linear and shouldn’t exceed the rate at which average HDD seem to grow anytime.

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Do you have any thoughts regarding where bitcoin prices might head or what the underlying reasons behind the price decline are?

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