Can an Increase in the Block Size Push the Bitcoin Price Higher?

Can an Increase in the Block Size Push the Bitcoin Price Higher?

bitcoin price

Following a spike that brought the bitcoin price beyond the $600 mark, the market temporarily stood at $626 before dropping to $619. A little disappointing, but bitcoin is still better off than where it was just a few weeks ago, and the currency is showing no signs of slowing down in the coming days.

Also read: Bitcoin Price Breakout Leads to $600, More Growth to Come?

Bitcoin Price and Scalability

Image result for roger verOne analyst writes:

“We got what we were waiting for. Price broke through our predefined resistance level, and – something that we’ve not seen in a while – we got a sustained run-through to take out a profit target almost immediately. This bodes well for today – we will likely see something of a near-term correction as the shorter term speculators book profits on the move, but beyond that we could easily see a return to the upside and another opportunity to get in and out of the markets on a bullish entry.”

According to one source, effervescent bitcoin evangelist Roger Ver is at it again, claiming that bitcoin will eventually reach a worth of $100,000. A bold statement indeed, but Ver joins several mainstream figures and suggesting an increase in block size, although the prospects of a potential increase aren’t as simple as they look:

“Bitcoin is surprisingly difficult to scale if we are to retain its degree of decentralisation and censorship resistance. Do we compromise the value of the thing itself for the sake of making it more popular? What is the objective gain of such a compromise? Ver does not address this point in his recitals, nor does he answer direct questions about the implied dilemma.”

At first glance, it would appear that a block size increase would allegedly cause the bitcoin price to drop. Increasing something’s proportions only makes it larger and more accessible to everyone. The rarity it once possessed dissipates, along with levels of its value.

But as the recent halving has shown, this isn’t always true. Everyone was certain that the halving would cause bitcoin to legitimately rise beyond the $1,000 mark without the “aid” of market manipulation. Not only did this not occur, but an attack on Bitfinex was all it took to cause the price to sink rapidly soon after. The theory of size appears solid when in actuality, it tends to be circumstantial.

Either way, the word is out that bitcoin is rising to the top, and will likely do so for some time:

“It may not look like it, but Bitcoin is in an advancing trend toward $680 and beyond. Remain patient as the majority of the market comes around to the notion.”

How long will it be before bitcoin hits $680? Post your comments below!

Images courtesy of Bitcoinist,

Nick Marinoff

  • Paul Bond

    I used to be one of those that’s would say “let’s make it 2Mb for now and see how we go”. Watching the progress of things like Segwit/Lightening and other candidates (and the Ethereum debacle) has changed my attitude. Just looked at the average blocksize over the past year and now feel we’d be better to leave it at 1Mb and not push too far too high too soon. If we have our ducks in a row and can accommodate Visa like transaction capacity and speed, and we can push for mainstream using that, leaving the underlying blockchain alone for deposits of grouped transactions and the larger intercontinental SWIFT like transactions.

    We’ve used our ‘first mover’ card, now I think we should be aiming to show the world how solid it is, let the word ‘bitcoin’ stip into TCP like obscurity to the average user, and have a side chain with a sexy name for the mainstream everyday user.

    If that were the way it advances then we should be patient for a couple of years, and hopefully there’ll be a larger percentage of users over speculators/traders.

  • Erik

    So you prefer a more centralized network ?

  • Paul Bond

    Please explain. I never mentioned being more centralised anywhere.

  • Erik

    no offence but that proves my point I am making. Lightening network like solutions+a small blockchain. Make bitcoin a settlement network and centralized network. You really can’t use Lightening like solution affectingly otherwise.

    Segwit also does increase the size of what you need to store the only difference is you separate what you store. Hence the name segregated witness. The name should have been “segregated signature”