Why is Bitcoin so slow this p[ast month?

[drkknghtavngr]

On october, bitcoin doubled in a metter of weeks, right now it wont go higher, it even went lower... What do you think is going on?

[ImNotThere]

China is cracking down on it due to the massive power usage on bitcoin mining

(4 gigawatts) and china is one of the larger players in the mining game

[drkknghtavngr]

Does that mean the more miners, the higher the value of crypto???

[Mr Bilbo]

I could be completely wrong but if there are more miners it means there are more bitcoins available so lower price?
 

I could just be talking bullocks so please correct me. 

[Jade]

Just now, Mr Bilbo said:

I could be completely wrong but if there are more miners it means there are more bitcoins available so lower price?
 

I could just be talking bullocks so please correct me. 

If supply exceeds demand, prices will fall. If demand exceeds supply, prices will rise. Pretty simple economicss... for example, look at graphics cards.

[mariushm]

My guess is that prices are also going down due to taxes.. lot of people held back on selling cryptocoins so they wouldn't pay taxes in 2017 for them and now sell.

Now some are selling a part of their coins to use cash or invest in other coins.

Sadly, the other coins are still affected by the bitcoin fluctuations.

 

also keep in mind lots of people just start working after xmas and new year holidays so prices should go up in the following days

[mariushm]

3 minutes ago, Mr Bilbo said:

I could be completely wrong but if there are more miners it means there are more bitcoins available so lower price?
 

I could just be talking bullocks so please correct me. 

no, new coins are created at almost constant flow. new miners = mining difficulty increases, takes more time to get a coin using same hashing power

 

Quote

Also bad news from Korea, Brazil, Warren Buffett.

Koreans just announced they don't ban or make laws for crypto, just want more regulated/safer (with those know your identity laws) exchanges

 

and nobody cares about that buffet moron in crypto-land

[Mr Bilbo]

1 minute ago, Jade said:

If supply exceeds demand, prices will fall. If demand exceeds supply, prices will rise. Pretty simple economicss... for example, look at graphics cards.

So it is, knew I was going wrong somewhere! 

[ImNotThere]

5 minutes ago, drkknghtavngr said:

Does that mean the more miners, the higher the value of crypto???

countries are cracking down and forcing people to pull out of the mining game, if no one is mining them, people will hold them and no one will spend them causing the price to stagnate and potentially drop, like what is happening now

[Mr Bilbo]

1 minute ago, mariushm said:

no, new coins are created at almost constant flow. new miners = mining difficulty increases, takes more time to get a coin using same hashing power

Ahhh yes, I'm new to all of this so I'm just trying to get my head around it all... So the more people mining the fewer everyone is going to make overall because it's harder to mine?

[minervx]

The reason Bitcoin is stagnant is because other coins offer better ROI.  Through mid-late December and early January, I held onto my Bitcoin waiting for a surge, but meanwhile a lot of other coins rose far more than I ever expected BTC to.  The problem with BTC is that it has a market cap of 200-250 billion dollars.  It needs 250 billion dollars do double  in value, whereas a coin like Stellar Lumens only needed ~10 billion to double.

 

Bitcoin is not a great currency.  High fees.  Slow transaction.  No real software/tech/innovation that we're seeing in newer coins.  Bitcoin will still grow this year, but it won't be #1 forever.

[minervx]

12 minutes ago, drkknghtavngr said:

Does that mean the more miners, the higher the value of crypto???

i'm not sure.  i think it's a chicken and egg type thing.  people mine because its profitable, but i dont think increased mining affects the profitability of coins.

[minervx]

A lot of beginners are panicing.  We've seen this for years.  In September 2017, the market cap of the crypto industry went from 150 billion to 100 billion and people said it was the end of cryptocurrencies.  Now it went from 800b to 550b and people are saying the same thing.

 

Warren Buffet has falsely predicted the collapse of cryptocurrencies for the past 8 years.  Only ~1% of people use crypto, it's 1/30th the size of the stock market and people are saying it's unsustainably large.  I find this hard to believe from a logical standpoint.  If we're comparing this industry to the dot-com bubble and mortgage industry, were only 1% of people using websites and getting loans on their home?

[mariushm]

Quote

Ahhh yes, I'm new to all of this so I'm just trying to get my head around it all... So the more people mining the fewer everyone is going to make overall because it's harder to mine?

 

Yes.

For example, Ethereum scales mining difficulty so that you'd get a new "block" every 16 seconds and you get a reward of around 3 ethereum + the transaction fees for the transactions you include in the block ( up to around 380 transactions and in general up to around 0.5 ethereum from those 380 transaction fees)

 

You can see this difficulty increase here : https://www.etherchain.org/charts/difficulty

As price started to go up around 8th of December and more people switched to mining Ethereum, the difficulty increased keeping the block discovery time to around 16 seconds.

[minervx]

Whales (millionaire investors) are taking out their money and collecting profits.  And some casuals are panic selling.  This happens periodically.  Hold.