3 Biggest Misconceptions of Bitcoin Pricing


#1

Originally published at: https://wirexapp.com/3-biggest-misconceptions-of-bitcoin-pricing/

Bitcoin is like a temperamental teen adolescent. Up one moment and the life of the party. Then down the next… and we’re all holding our breath walking on eggshells. Feeling misunderstood, misinterpreted and unappreciated. Ironically, so is Bitcoin. Bitcoin is extremely volatile, and when it comes to trading bitcoin, people often misunderstand, misinterpret and miscalculate. A common phrase floating around lately… I own $500 worth of bitcoin This statement is technically flawed and can only be true at…


#2

It is clear over time, month by month that the value of BitCoin is going up, do you think this trend will continue for the next few years?


#3

If you judge by the last 8 years; then yes.


#4

This is an old chart; looking at every Bitcoin price drop of over 25% and charting how long it took to recover.


#5

What is everyone thinking of doing?


#6

The best you can do is to HODL ! :sunglasses:


#7

#hodlgang


#8

LOL, that video is so hilarious ! :rofl:
for sure I’m going to adopt the #hodlgang hashtag !


#9

This is all and well, but when people start to realize massively that they can’t transact on the Bitcoin network (stuck transactions, huge fees) any more, they’re gonna panic sell all the way down!

And I’m not talking about ordinary people only. I had a talk recently with some miners who have wallets with numerous transactions (miner gains). To spend all those inputs, it will cost them tens of thousands of $$$ in transaction fees!! In some cases, they’ll need more bitcoins for transaction fees than the contents of the actual wallet itself = Unmovable funds!

If Bitcoin fails to be what it was designed for (a peer-to-peer electronic cash system), then it will only be a richman’s toy, for the 1% of the people who don’t care spending thousands of $$$ for moving their millions or billions.

The question to ask here is: If only 1% of people want to use Bitcoin, will it still cost $13000 ?


#10

This is a good point; but I still think that even with the ridiculous fees Bitcoin can still remain a store of value. And it will still be cheaper and easier to move than Gold for example.


#11

Tony: What you are saying is F.U.D. - Fear, uncertainty and doubt - You don’t work for a bank do you ??
I am a miner and have been since 2014 and have no problem selling bitcoin or transacting over the network.The last transaction I did between wallets 2 days ago for $350.00 USD cost me .00001319BTC or 0.14 USD or 14 cents and was confirmed within 30 mins… You try and get a bank to transfer intercountry for 14 cents in 30 mins ?? What size were the transactions your friends were trying to send as if they have been mining really small amounts then yes the fees seem higher to transfer say $2.00 for example.
This is what the bitcoin network is all about, getting away from traditional banking methods that are loaded with fees and are controlled by the banks and governments like Big Brother !
There are new protocols being put in place right now that will make transfers almost instant at very low fees.
When you start spreading bad rumors like this it creates the bad image bitcoin has.
I ask you - do you have or have had any bitcoin yourself to qualify what you are talking about ??
This is what F.U.D is - Fear, uncertainty and doubt.


#12

Steve, it’s wise to notice some important things in a conversation before accusing someone of spreading FUD and/or (you) making foolish assumptions, when someone is saying something different to what you believe.

What you failed to notice is that my previous post is more than one month old, when transaction fees were like this. Lets have a look at some math that proves you’re either ignorant or not willing to see what I was showing. Because numbers never lie!

Suppose you had a bitcoin address with 2 bitcoins (mining rewards of about $28,500 at that time) split in 200 transactions of 0.1 each and you wanted to spend those quickly. Each input would add about 180 bytes to the transaction. So to spend all 200 inputs, the transaction size would be (180 * 200) 36000 bytes. At the time of me previous post writing, the priority transaction would require about 400 satoshi per byte so the transaction would cost (36000 * 400) 14400000 satoshi. Yes, this is 0.14BTC which was around $2000 at that time.

Do you want to tell us how much fees you’d have to pay (mid January 2018) if the above example of 2 BTC mining reward was split in transactions of 0,001BTC each (i.e. 2000 inputs)?

And I almost forgot… Speaking of transaction times lets have a look at the blockchain and take for example this transaction.
Received Time 2018-01-02 00:36:32
Included In Blocks 505449 ( 2018-01-22 01:42:15 + 28,866 minutes )
Yes! This is 22 days later!

So please, for the sake of your reputation, next time do your math before publicly attacking anyone. And to answer your question… No, I don’t work for a bank. I’m in the blockchain business and that’s why I do care to discuss Bitcoin’s problems; seeing and discussing the problem is the first step taken in the direction to solve the problem.

So I ask you - What do you think? “Do I have, or have had any bitcoins myself to qualify what I’m talking about??” Is this FUD?


#13

Tony, If you are in the blockchain biz then you would have heard of the new protocols that are about to be online speeding up the network like segwit ? These are going to make transactions almost instant…

Why I am against anyone trying to tell everybody that bitcoin is no good with all of these problems normally ends up in a big sell off in the market dropping the value of bitcoin down.
We all want it to become less volatile and more stable instead of all this panic selling as soon as they hear something bad about bitcoin they start dumping.

Like I say, I don’t have any problems with transactions and the time they take and I am getting direct payments into my wallet from mining everyday ?
Perhaps I am not transfering large enough amounts to have problems Tony, The most I transfer is $3K to $4k to places like Bitmain in china buying miners and that has normally completed 5 transactions within an hour releasing the funds.
If Bitmain in china doesn’t have access to the funds within 1 hr, they normally cancel the purchase transaction and you have to start all over again.

Ok, I’m looking at your example transaction on the blockchain…

The transaction (tx) fee is the difference in value between your tx input(s) and your tx output(s). The fee is to incentivise miners to include your tx in a block. Until your tx is included in a block it’s not part of the blockchain and the recipient will most likely not acknowledge the payment.

It says the BTC transferred was $625.91 and states the fees for the transaction were $3.01
what is wrong with that, It looks pretty cheap to me.
As a check the fees are normally the inputs minus the outputs which works out to exactly whats on that page.
And you are saying 22 days later, yes that might be for all of to 700 odd confirmations on the send but most transactions confirm and release the funds after 5 or 6 confirmations don’t they ? All of mine do…

Here is one I did myself last week for $50 usd. It took all of 1 minute before 5 confirmations were there.
https://blockchain.info/tx/848ed2b4fba8b35477ddf4d4f4523d15c26e70a00bb378de2650a4fa1e4203cc
And the fee I paid to do it was a little high but I wanted it to confirm quickly.
fee was .00001319BTC = 15 cents .

And you still haven’t answered my question? Do you have any bitcoins and do transfers over the network right now ?