Im watching a meetup with Gavin Andresen, and hes saying stuff thats making me scratch my head:
"It seems like the big drop [from $1000] was when China said..."
He must know that because mining difficulty goes up with the price that miners are forced to sell to break even, therefore the price of $1000 was totally unsustainable given that it would require billions
of $ from buyers to keep the price up.
Second bizarre thing he says:
"Mining centralization & decentralization will go in waves".
He compares mining to the evolution of computing from mainframes -> PCs -> phones connected to the cloud. When in reality the higher the price the more people are incentivized to make specialized ASICs. Its a one-way trajectory.
Here's where the China & mining discussion starts:https://youtu.be/RIafZXRDH7w?t=18m08s
Its an eye opener that the Bitcoin Core developers seem to be so slow compared to whats going on here. It reinforces my view not to buy any Bitcoin until the block reward halving which is still a year away.