Does proof of key event have any effect on Bitcoin price?

Lanatsa

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Quote from: Vision2020s on January 03, 2020, 02:02:04 AM

So I haven't been that long in the industry and from some articles I read online, I was made to understand every 3rd of January was assigned as a "proof of key" day and the event take place every year and today is 3rd of January but I was trying to observe if that would influence the price of bitcoin but haven't noticed anything extraordinary or am I making a conclusion too soon? For those who have been active in the space for quite sometime, does this event usually affect the price of bitcoin considering most users would likely sell their coins in anticipation of a dip in price.

Not all fundamentals or news would have a an assurance that it would affect the entire market.Even with that "halving" event, we cant still be sure if there would be a price pump on that time or we do just simply
see a sideways movement instead.It isnt really bad though to make use of fundamentals when trading or investing but you should be aware that these events can be used either be a FOMO or FUD thats
why you should know to differentiate on which one.

slashz9

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Quote from: mk4 on January 03, 2020, 09:51:06 AM

Just to add: the proof of keys even can significantly decrease the trading volume(as they wouldn't be able to trade their coins), assuming that a decent total percentage of people who actually trade withdraws their coins from exchanges unto their own wallets. Now how does affect the prices, I really don't know. But it could probably mean increased short term volatility.

if they can't withdraw their coins maybe they will leave it in their wallet and don't do any activities.
unless they really intend to do it, that is why it will not have a large effect even in the short term.
today the market may go up because it has reached the oversold point,so buying demand becomes a lot.

piebeyb

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many events that we missed since yesterday until now, have nothing to do with the price of bitcoin will increase or not, because it is the market needs and interests of a person so it has nothing to do with any event be it a bitcoin birthday though, nothing interesting except halving later Grin

Spaffin

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Quote from: ecnalubma on January 05, 2020, 03:22:19 AM

Proof of keys could be a yearly tradition for crypto industry. It is also one way to find out if exchanges are honest with their crypto holdings. Proof of keys also one way to proved that Craig Wright is a crook. Grin

Undoubtedly, in the situation with Craig, almost the entire cryptocurrency world was convinced that this person is a fraud, because he could not provide proof of ownership of certain Bitcoin wallets, which would confirm his identity with Satoshi Nakamoto. Apparently he really does not have any keys and this convicts him of fraud.

ecnalubma

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Proof of keys could be a yearly tradition for crypto industry. It is also one way to find out if exchanges are honest with their crypto holdings. Proof of keys also one way to proved that Craig Wright is a crook. Grin

panganib999

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No it doesn't. It's more close to something like Awareness day for traders and investors, especially those new to the scene. It reminds them of how untrustworthy the wallets of exchanges are. Which is a pretty nice yearly event/tradition, considering that newbie users often come to the scene every now and then. And since they refuse to acknowledge some of the tips traders give out, giving them a yearly event which signifies its importance should give them a bit of a wide eye regarding it.

Anw, as for the price, nope. Close to no effect in the BTC price. I mean, heck, it just relates to BTC being transferred from exchange wallet to private wallet. It doesn't make the traders trade them for USD or some other coin. The transfer generally takes a few hrs at maximum, so any whom would want to trade on the said day should still be able to make it.

Wexnident

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I doubt it has an effect. The goal of Proof of Keys is to raise awareness towards those traders and investors that their coins are of their own and they should store them in their own wallets, not the exchange ones. They don't convert their BTC to USD so market price wouldn't change. They just pretty much withdraw their coins away, but still in the currency of BTC.

I'd also assume that not much would change even if traders can't trade, since big holders originally hodl them for some time. It's not like any event occurred that made it required for them to trade for profit.

dragonvslinux

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Almost certainly not.

Artemis3

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Quote from: heidikim on January 03, 2020, 10:22:38 AM

The price of Bitcoin gained resistance against many things. In the past, systemic events were very important for bitcoin. But bitcoin has been on this market for 10 years. Bitcoin proved itself. Only a full integration of a technology like LN is needed for a new era. The price of bitcoin is unfortunately in the hands of speculators.

You know, i don't really expect LN integration to do much. In my opinion LN will not get wide use, its more a publicity stunt. "Hey we can do unlimited transfers per second now", yeah but there really is no need to.

Also, the price of bitcoin is in the hands of the market. This is a blessing, it is very fortunate, that no State or company is artificially pegging it only waiting for it to explode. The longer in the market the less "manipulation". This is a consensus of price on a global scale, it means freedom.

Bitcoin is slowly finding its price, and will fluctuate less and less overtime, as it has been doing so in all its history.

Because more and more people own bitcoin, speculation moves it less and less. This is maturity. You can still do such things with altcoins, but with bitcoin it is less and less so.

Bitcoin fluctuation is a sign of freedom, if you are a holder, you shouldn't care, just wait it out. If you are a trader, then use your knowledge to profit from it.

th3nolo

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Quote from: Vision2020s on January 03, 2020, 02:02:04 AM

So I haven't been that long in the industry and from some articles I read online, I was made to understand every 3rd of January was assigned as a "proof of key" day and the event take place every year and today is 3rd of January but I was trying to observe if that would influence the price of bitcoin but haven't noticed anything extraordinary or am I making a conclusion too soon? For those who have been active in the space for quite sometime, does this event usually affect the price of bitcoin considering most users would likely sell their coins in anticipation of a dip in price.

In the past, I might say that it had a significant effect but most Bitcoin volume today occurs on derivatives platforms where leverage allows users to gain more buy/sell power than they would have if they were trading on a spot exchange.

I understand that you want to take into account all the variables to justify the price of Bitcoin, but the answers are in the chart there is no need to look elsewhere.

MarioV

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On what basis should they be related? Having the keys means having your own bitcoins, otherwise you don't have them. In fact, it would also be a value of 0. Yes, the two are related. Roll Eyes

kryptqnick

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Quote from: mk4 on January 03, 2020, 09:51:06 AM

Quote from: odolvlobo on January 03, 2020, 07:08:44 AM

It doesn't have anything to do with buying or selling so I don't think it will affect the price. On the other hand, if it causes an exchange to fail, that could result in a loss of confidence in Bitcoin , which may cause the price to fall.

Just to add: the proof of keys even can significantly decrease the trading volume(as they wouldn't be able to trade their coins), assuming that a decent total percentage of people who actually trade withdraws their coins from exchanges unto their own wallets. Now how does affect the prices, I really don't know. But it could probably mean increased short term volatility.

If the trading volume of Bitcoin goes down and traders get nervous, the price is likely to fall down, I guess. But I've read about the Proof of keys event, and now I don't understand why traders would have problems with trading... It seems that it's something people can participate in if they want to, but it's not obligatory. Here's some info from this website:

Quote

Those taking part in the event will withdraw all their cryptocurrency holdings on exchange platforms before January 3rd and keep it in a wallet for which they themselves hold the private key.

If not many people take part in the event, it should not affect the price, right? And I think traders are the kind of people minimally interested in such things...

heidikim

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The price of Bitcoin gained resistance against many things. In the past, systemic events were very important for bitcoin. But bitcoin has been on this market for 10 years. Bitcoin proved itself. Only a full integration of a technology like LN is needed for a new era. The price of bitcoin is unfortunately in the hands of speculators.

Artemis3

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Quote from: Vision2020s on January 03, 2020, 02:02:04 AM

So I haven't been that long in the industry and from some articles I read online, I was made to understand every 3rd of January was assigned as a "proof of key" day and the event take place every year and today is 3rd of January but I was trying to observe if that would influence the price of bitcoin but haven't noticed anything extraordinary or am I making a conclusion too soon? For those who have been active in the space for quite sometime, does this event usually affect the price of bitcoin considering most users would likely sell their coins in anticipation of a dip in price.

No it doesn't. In theory it would reduce trades, but i don't think many traders actually participate in the event. However, network transaction increases, so moving coins in or out of an exchange is bothersome (ironic given the nature of the event).

It is my opinion that the more time that passes, the less this event is meaningful. There are more bitcoins than ever every year, and even less people willing to participate in it. This day should be renamed Bitcoin day as commemoration to that famous first block.

puertorikosena

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I do not think that it is worth paying close attention to certain days or regular events. You need to look at the situation as a whole and make trading decisions when it comes to investments or trading.

mk4

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Quote from: odolvlobo on January 03, 2020, 07:08:44 AM

It doesn't have anything to do with buying or selling so I don't think it will affect the price. On the other hand, if it causes an exchange to fail, that could result in a loss of confidence in Bitcoin , which may cause the price to fall.

Just to add: the proof of keys even can significantly decrease the trading volume(as they wouldn't be able to trade their coins), assuming that a decent total percentage of people who actually trade withdraws their coins from exchanges unto their own wallets. Now how does affect the prices, I really don't know. But it could probably mean increased short term volatility.

odolvlobo

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Quote from: Vision2020s on January 03, 2020, 02:02:04 AM

So I haven't been that long in the industry and from some articles I read online, I was made to understand every 3rd of January was assigned as a "proof of key" day and the event take place every year and today is 3rd of January but I was trying to observe if that would influence the price of bitcoin but haven't noticed anything extraordinary or am I making a conclusion too soon? For those who have been active in the space for quite sometime, does this event usually affect the price of bitcoin considering most users would likely sell their coins in anticipation of a dip in price.

It doesn't have anything to do with buying or selling so I don't think it will affect the price. On the other hand, if it causes an exchange to fail, that could result in a loss of confidence in Bitcoin , which may cause the price to fall.

Vision2020s

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So I haven't been that long in the industry and from some articles I read online, I was made to understand every 3rd of January was assigned as a "proof of key" day and the event take place every year and today is 3rd of January but I was trying to observe if that would influence the price of bitcoin but haven't noticed anything extraordinary or am I making a conclusion too soon? For those who have been active in the space for quite sometime, does this event usually affect the price of bitcoin considering most users would likely sell their coins in anticipation of a dip in price.

Topic: Does proof of key event have any effect on Bitcoin price? (Read 231 times)