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Possible reason why Bitcoin price is decreasing for last few days

Discussion in 'CryptoCurrency' started by krishnaverma, May 26, 2018.

  1. krishnaverma

    krishnaverma Jr. VIP Jr. VIP

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    Christmas is very far. Still I keep accumulating.

    Finally they realized that their accusations against crypto is of no use.
     
  2. Curtis Sumpter

    Curtis Sumpter Junior Member

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    bitcoins is too volatile
     
  3. cwiney

    cwiney Junior Member

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    FUD is the reason, and panic people make it even worse.. Whales are accumulating coins at cheap price for the next big jump!
     
  4. krishnaverma

    krishnaverma Jr. VIP Jr. VIP

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    When will it happen ? What stops them from creating more FUD and buying even lower ?
     
  5. cwiney

    cwiney Junior Member

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    Only time will tell..
     
  6. subster

    subster Elite Member

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    This markets force you to switch from day trading to investors mode. Easy as that.
    The bear market will remain until we make progress in regulating these markets.
    Dump your fancy indicators, we broke major support on the weekly and the big money is preparing but sitting sidelines until the wild western manners of crypto is tamed by regulations - smart money avoids uncertainty - easy as that.
     
  7. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP

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    This doesn't make sense because the rate of Bitcoin production does not depend on ASIC speed.

    12.5 BTC are mined every 10 minutes, if the miners become faster the difficulty is increased so it remains ~10 minutes per 12.5 BTC.

    So no, this is not why Bitcoin is dipping.

    IMO the issue has to do with Tether.
     
  8. tb303

    tb303 Senior Member

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    There is a bit of lag though. The hash rate went up a lot in May and brought the block time down near 8 minutes. This caused the largest jump in difficulty for over 12 months. But yeah the new ASIC's wont make mining cheaper overall so you cant blame that.

    Tether has been an unknown for what 2 years now or something so I wouldnt pin all the blame on that. Its certainly part of the story though.

    The mtgox wallets are another thing that everyone is watching as there's still a lot of bitcoin to be sold off and that could be part of the reason why volume is so low. Watching and waiting.

    Last year everyone was dreaming of a 5k bitcoin by Christmas. Now everyones complaining its 6.5k.

    If you see the total network hash rate start to drop then you should be worried as that is your first sign that the miners are leaving. Its currently still going up although the number of actual nodes does seem to have levelled off recently so it is fair to presume the increasing hash rate is down to new gen ASIC's. That could bring into question decentralisation of the network again but lets hope not as bitcoin is still way more decentralised and secure than any of its competitors and will take the whole eco system down with it if it were to "die".

    Block reward will halve again in 2020. If we're still here then the big question is what will that do to the price?

    https://bitcoinwisdom.com/bitcoin/difficulty
    https://coin.dance/nodes/core
     
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  9. AryabhattZero

    AryabhattZero Senior Member

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    Yea my portfolio is -54% now guess i stepped in at the wrong time
     
  10. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP

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    The lag has been exploited in the past. November/2017 for instance. But it doesn't last long, in a couple of days it gets readjusted again.

    Right this moment Bitcoin is building up massive momentum. There are at least 20 news on the horizon that'll boost it to the new highs soon: China might notice it is getting behind USA in cryptos, banks are adopting, SEC has said cryptos are not securities. Everything is set up. Let's see where this is going. I'm buying.
     
  11. tb303

    tb303 Senior Member

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    The time it takes to adjust the difficulty is possibly my main gripe with the bitcoin protocol. 2016 blocks is a target of two weeks. If the network was to lose 50% of its hash power (unlikely I know) then your looking at a month before it adjusts lower. That would be a painful month if you were to mix in a spike in transactions due to panic.

    Lets be accurate here. What Jay Clayton said is that Ethereum and Bitcoin are not securities. There is no decision on the rest of crypto yet. It also would need to go before a judge before that is final. I am hoping it shows a softening towards crypto from them though as I hold quite a bit of Power Ledger and whichever way i look at powr it looks like a security. What that ruling would actually mean long term for anyone outside the US I have no idea though.

    edit: I dont mean to come across as anti-bitcoin as Im not. Im still very much a "believer" in the tech. But I do feel people should realise how early this all still is. The people slating it and saying its slow or expensive seem to think they are looking at a finished product. Bitcoin Core version 0.16.1 was just released so its still very early beta.
     
    Last edited: Jun 19, 2018
  12. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP

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    If you suddenly attacked Bitcoin and you sped mining up 4X somehow, then the 2016 blocks would be mined 4X faster, so instead of 2 weeks it'd be 3.x days. Remember the difficulty is adjusted in blocks, not in weeks. In 9 years nobody has been able to break the Bitcoin protocol. Think about that for a minute.
     
  13. tb303

    tb303 Senior Member

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    Yes thats the way its designed but Im talking about a drop in hash power. That would slow generation of blocks until the 2016 passes. Hence the time needed will extend. It just seems too high to me. I suppose I really should lookup why 2016 was chosen by Satoshi in the first place.

    As for your 9 years comment. There have been some nasty bugs in the past but all in all I totally agree - your preaching to the converted here :) Thats why I said above if bitcoin was to fail somehow it takes everything with it. This is a fact that a lot of the people on here shilling TRX, XRB, NEBL, ONION, EOS or whatever the latest shiny shiny thing is seem to forget. Steve Wozniak said in that recent interview that bitcoin is mathematically pure and that about sums it up for me.
     
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  14. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP

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    Good point about the slowing down. In that case you can only hope the market self regulates. Miner greed will attract more miners.

    Far as I know 2016 was an arbitrary number chosen because he thought everyone would mine Bitcoin using their PC's only and that this would never be a critical thing, that is, he thought people could not attack the network using advanced hardware because CPUs can only get so much faster than they were in 2009.

    In a CPU mining world 2016 blocks would be safe. He did not predict GPU's and ASICs joining the network. That's why newer cryptos have much shorter adjustment times.
     
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  15. tb303

    tb303 Senior Member

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  16. DavidLeadgen

    DavidLeadgen Jr. VIP Jr. VIP Premium Member

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    Do you think bitcoin will grow in value until the end of the summer?
     
  17. Botwiz

    Botwiz Executive VIP

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    The market is still at a huge imbalance. When you see 1 wave that goes from $45 to $1163 then a new wave that goes from $152.40 to $19666 based on Bitstamps data. Of course we need to come back down. It has nothing to do with news, FUD, or any of that bullshit. Its simple the market must balance out. Once it does the bulls will return. Where that is exactly is still unknown. We still need to wait to see if the support in the $3k zone holds. If not everyone and there mother is going to be on the wire saying tulip mania, its over, etc. Then revisiting the last high of 1k is feasible. Really when you think about it, we need and want a massive crash. This is what will entice big dick money to get into this highly manipulated ecosystem. I know if I was a hedge fund manager I wouldn't even be thinking about entering in at this price point of 6k roughly.
     
  18. krishnaverma

    krishnaverma Jr. VIP Jr. VIP

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    Summer is already ending in my country. There are no signs of recovery in prices.