Bitcoin in 2016 - expectations. Part Two
2014 - Altcoin problems
The falling rate of Bitcoin and excess of production capacities lead to disappointment of many bitcoin holders. They eagerly took advantage of the opportunity to diversify their portfolio and 2014 became the year of several significant altcoin bubbles.
2015 – Blockchain hysteria
The limited interest from speculators and a daily production of 3500 bitcoins immediately affected the sale. Most of the year Bitcoin remained undervalued. A significant number of bitcoin holders sold some of their coins. Sold coins went to the hands of other more cold-blooded Bitcoin investors.
However, the mining industry successfully overcame difficulties, small miners were kicked out of the business. Now the whole mining process is controlled by large Bitcoin mining companies with low costs. The adoption of Bitcoin gained popularity in the world with the help of gambling, black markets and by making it possible to pass the monitoring control over the capital movements. A solid increase in the number of transaction up to 3 per second was the result of all these events.
More and more discussions started to popup about and increase of network capacity. Large conference in Hong Kong in December reached sort of consensus.
The blockchain hysteria started to rise. Nine banks, including Goldman Sachs and Barclays, announced the beginning of "partnership on blockchain". IBM began to develop blockchain applications. Investments reached various blockchain-related projects, e.g. $15 million went for Ethereum.
Soon Blockstream released the first opensource code for a "sidechain" - technology that allows to move bitcoins from the main blockchain protocols of higher level, where they may be endowed with new functionality, such as high-speed transactions, confidential smart contracts etc. Meanwhile Bitcoin managed to break $300 level.