are transaction delays crashing Bitcoin prices? - page 2.

pearlmen

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Quote from: BreathOfZen on June 12, 2017, 07:42:31 PM

I've noticed that whenever BTC gets near to $3000, transaction costs go up and payments start getting stuck. The next day it seems to crash down again. Is this a coincidence?

Bitcoin price is based on the forces of demand and supply and when people cannot make their transactions as at when due its only logical to find other means of making the transaction. In the few months back, when a deal is to be struck there is no need for the asking of which currency to use because its by default that bitcoin is the currency of acceptance but today it needs to be agreed whether I am ready to accept bitcoin or not. All this little issues in the long run when put together affects the overall price of bitcoin.

Peter789

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Yes delayed transaction times are causing problems. Bitcoin can't be really big unless there is serious improvement. The public wants very fast and cheaper transactions.

And SegWit is going to fix that......right?

slaman29

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Actually, the network started getting bloated with days delays end of 2016, when it was approaching 1k. And then when it broke the very old 1400, that's when network got continuously fatter and the price just kept rising. If there is any relation, it's the other way round. Bitcoin price increase leads to speculation, leads to more volume to trade, leads to tx delays.

ActiveP

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I doubt there is any correlation between crashing bitcoin prices and slow transactions. I think whenever the price hits $3000, there are enough sell orders placed to bring the price down.

A few people I know are waiting to sell at $3000, and there are many others like that.

zedsacs

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It's normal. Whenever the Bitcoin price rises, the fees will rise too. It's an domino effect I can say. Last year, the prices is just about 700usd, there are no transaction fee that time, but when bitcoin reached the 1000 usd, they put an a transaction fee (actually it's for the miners).

Lancusters

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Quote from: Barcode_ on June 21, 2017, 07:08:30 AM

I am not sure if the delaying of transactions are one of the reason causing bitcoin prices to drop, but if bitcoin does not solve the block size problem soon, I believe there might be a time when some of the users that are frustrated with the long waiting time for confirmations in the blockchain might be switching to altcoins, and this might cause the value of bitcoin to drop.

To ensure that people stopped using bitcoin you need to have confidence in altcoins. Such people not so much. So transactions in the alternative coins go faster. Besides, compared to bitcoin is very little opportunity to spend altcoins. So I think that in the short term, bitcoin will have no problems.

stomachgrowls

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Quote from: Barcode_ on June 21, 2017, 07:08:30 AM

I am not sure if the delaying of transactions are one of the reason causing bitcoin prices to drop, but if bitcoin does not solve the block size problem soon, I believe there might be a time when some of the users that are frustrated with the long waiting time for confirmations in the blockchain might be switching to altcoins, and this might cause the value of bitcoin to drop.

I cant really see a thing on where delayed transactions do really have relation on sudden price decrease of bitcoin.We all know that the entire network does really have lots or huge pile of transactions which causes for the delay and it has nothing to do with the price.When reaching up again on $3000 the price goes down because bitcoin holders are securing profits or any other circumstances.Who knows?

Barcode_

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I am not sure if the delaying of transactions are one of the reason causing bitcoin prices to drop, but if bitcoin does not solve the block size problem soon, I believe there might be a time when some of the users that are frustrated with the long waiting time for confirmations in the blockchain might be switching to altcoins, and this might cause the value of bitcoin to drop.

Palmerson

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Quote from: foxbat on June 13, 2017, 12:00:35 AM

Quote from: BreathOfZen on June 12, 2017, 07:42:31 PM

I've noticed that whenever BTC gets near to $3000, transaction costs go up and payments start getting stuck. The next day it seems to crash down again. Is this a coincidence?

I think that is the normal transformation of a coin, the value of bitcoin increase steady decline, this shows a stable and stable growth. If a currency is always rising, it can collapse at any time.

This can only happen when people lose hope for a price increase. Yet there is hope and the price will rise up. If over time the Internet will be a lot of suggestions for earnings bitcoins for unskilled workers it will strengthen the position of bitcoin and expand its popularity. I believe in bitcoin.

Prodigan786

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Even i observed the same thing as a general user of bitcoin who is not knowing much technical things about block size and all then we will come to conclusion that price crashing because of transaction delay.

bluefirecorp

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Quote from: BreathOfZen on June 12, 2017, 07:42:31 PM

I've noticed that whenever BTC gets near to $3000, transaction costs go up and payments start getting stuck. The next day it seems to crash down again. Is this a coincidence?

Personally I feel the higher is the transaction fees, the lower will be the number of transactions and automatically faster confirmations, isn't it ?
But yeah, you are right when the price is high people spend less bitcoins and they won't want to send a transaction of 2$ with a fee of 5$ so they avoid such transactions unless they make mass payments.

Tor_Man

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Price isn't so linked with the circumstances IMO, bitcoin price rise with increased demand (and most the buyers know about the delays already, not anything new), The price is based on the buy and sell and with people day trading bitcoin, it's regular for rises and dips to follow,
Regarding why it didn't exceed 3,000 USD yet, I guess because there isn't enough demand yet, nothing more.

DoublerHunter

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There is possibility that it is, because the transaction delays plus the high fees is a very stressful problem so most of the users now are thinking about transferring from bitcoin to one another to just escape from the problems in bitcoin. If these kind of problems will not resolved anytime soon then the price of bitcoin will just crash to the bottom.

Joshapat

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It could be, this was due to the effects of increasing bitcoin users, if this continues a long and massive, I worry many users a bitcoin redirecting to altcoin and of course it will make the price will drop.

hello_good_sir

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Quote from: BreathOfZen on June 12, 2017, 07:42:31 PM

I've noticed that whenever BTC gets near to $3000, transaction costs go up and payments start getting stuck. The next day it seems to crash down again. Is this a coincidence?

I don't think that the price correction can be explained by rising transaction fees, or at least that alone.

In fact, if it was to be because of a direct consequence of rising transaction fees, then it would have happened a lot time ago. The correction happened around 4-5 months after the original big pump that bumped btc over $1000, and ever since then transaction fees were skyrocketing. Wouldn't make sense for people to dump now just because transaction fees are high.

It is more likely that bitcoin prices have just been in a bubble state as of late. A correction is necessary in anything, if a bubble precedes it. There is nothing in this world that will last forever, bitcoin price booms included. So don't be too surprised when it does happen, and don't get too comfortable when things are all going well.

erickkyut

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Quote from: Dudeperfect on June 20, 2017, 11:19:50 PM

Good question. Well, I don't think it is affecting the current bitcoin price as I believe that there are many institutional investors entered into the Bitcoin and they booked their profits when Bitcoin touched $3K so transaction delays are not affecting the current price but yes, it is something that is restricting the further growth. There are many businesses out there who are willing to give a try to the bitcoin for their financial fund transfers but since there are the aspects like price volatility and fluctuating transaction fees, they are currently preferring to stay on wait & watch mode and hence it is affecting further growth.

we have different opinion. mine is transaction delays and transaction fees are some of the factors that can be consider to have an effect on bitcoin prices. the logic is simple, if the investors or the business is affected with the delay, probably you will look for something that offers the same service with faster transaction and lower fees. maybe the investors switched from bitcoin to other altcoins.

HasHe

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Quote from: DOGE12321 on June 12, 2017, 10:44:40 PM

Yeah, I think they are. The massive transaction delays cause people rethink before they send transactions. Some people have never had their transactions sent. I have seen a huge migration to other cryptocurrencies lately. I blame transaction times. We need a solution for this problem, fast.

Transaction delays does not directly affect bitcoin prices.But it has made many traders to drop their plans of accepting bitcoin as payment.It would affect bitcoin price in a long run.But there is no such potential crypto currency like bitcoin for investors to switch from bitcoin.

poplolnman

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Quote from: Amph on June 13, 2017, 12:39:13 AM

transaction delay will make the value shot higher, because people need to pay more which force them to buy more bitcoin, it's a win win for miners and they like the way it is now

so no i think it's the opposite, the limit on the block for the moment will help the value go a bit higher, what you noticed is just a coincidence...

this same thign happened at $2500 when we went again to $2k, the average fee at that time was around the same as now

that's interesting way to think , but you have to admit that the delays mostly makes people get upse and even move immediately to other coins as an alternative , and based on my personal experience once it's happened and i feel comfortable to do it. i would keep repeating the same and slowly feel like i'm rare to use bitcoin right now as i have an alternative , that's what i feel .

Sir Paijoe

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Yes it is definitely this is because creating a degree of confidence about the bitcoin will drop, surely the user concerned if the transaction failed so that money will be lost. When the trust decline, surely they will leave a bitcoin.

timerland

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Quote from: pooya87 on June 20, 2017, 11:05:12 PM

Quote from: bryant.coleman on June 20, 2017, 10:30:01 PM

It has more to do with the attitude of the exchanges. Along with the miners, the exchanges have also become greedy. They increased the withdrawal fees by as much as 1,000% when the minimum mandatory fee for instant conformation shot up. But now the mandatory minimum is back to normal rates, and the exchanges are not ready to decrease their fees.

which exchange did increase the withdrawal fees by 1000%?!! are you sure you are not making a mathematical mistake while calculating that percentage? all the exchanges i know increased the fees about 2x and to 0.001BTC which is not that bad since the transaction fees are nearly as much. and i think they raised it by that much to be safe and don't have to change it another time if it went up more.

I remember that Bittrex last year was able to offer 0.0002 BTC withdrawals and that seemed quite high to me. Right now as you said the industry standard seems to be somewhere around 0.0008 BTC up to 0.002 BTC. In bittrex's case it was quite a dramatic increase, although it wasn't 10x it was indeed 5x. This alongside with the exploding bitcoin price just doesn't really go well together.

I would argue that transaction fees don't affect traders all that much. If they are transacting tens/hundreds/thousands of bitcoins at a time 0.001 BTC is literally nothing and does not affect their buying power whatsoever. These traders are the people that ultimately decide the price of bitcoin. Although, if there was a decrease in transaction fees, then traders should be more willing to buy in as they see the community being able to actually use the coin for micropayments, making bitcoin more useful in a sense.

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