Until We Use It More Prices Wont Hold

These recent price jumps to $8,000 over the last few weeks really have me question bitcoins price. I still hold firmly that the real price should be around the $7,500 at the moment which we keep retracting back to and most likely will yet again.

The reason?

There really is NOTHING going on in bitcoin land and on top of that what is is actually bad news for bitcoin. This includes new laws going into place which are requiring exchanges to log and verify anyone that transactions more then $1,000.

Lightning network also has exploded which I believe is part of the rally here as you have to literally LOCK your bitcoin on the node. As it grows more and more bitcoin will be locked which creates pretty much a POS type of system where supply gets reduced to "staking" or in this case running a node. This most likely is also helping to hold us in at some higher prices.

However the real kicker is not all to man people are using lightning network or yet understand it.
It's a bit complicated to setup, you do run the risk of losing bitcoin on your node due to it being so new anything could go wrong and from what I can tell it seems complicated for most to setup a end point that uses the lightning network to make transactions on their store fronts.

The other thing most likely holding up price at the moment is litecoins halving happening here in about 54 days. Which is a major reduction of 25 to 12.5 compared to bitcoins in about a year from 12.5 to 6.25.

Until we start really using bitcoin for stuff its more of a store of value for most people and a large portion of people still own zero.

Compare this to the recent jumps here on steem we have seen as use cases for steem have been driven up due to new networks and tokens launching. This creates a need and for people to go out and buy more so they can pick up items on an exchange. This is what really drives the price and holds the price.

What do you feel the next big move will be to drive bitcoins price and hold it ?

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