Higher Blocksize = lower BTC price...Why? - page 2.

Pursuer

legendary

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Where is my ring of blades...

Quote from: BlackJacky on August 20, 2015, 02:42:03 AM

Hi all,

I just heard from an "expert" on Bloomberg that a higher blocksize will result in a lower btc price because more transactions will go through. But why will this result in a lower btc price?!?

Thanks in advance

this sounds more like nonsense to me honestly.
even if the bitcoin price goes down because of the higher block size it would be because of an indirect effect, like panic and FUD that is spread in the meantime which makes some panic sells happen.

Kazimir

legendary

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TV "experts" on Bloomberg talking about Bitcoin. Gimme a break, they understand jack shit about Bitcoin. Pay no attention to these commercial newscasters.

Denker

legendary

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Yeah yeah our so called TV experts...LOL.
The Block size will have no effect to BTC's price. To a greater degree it will effect transaction fees. If 1MB limit would stay and blocks get filled up people will pay higher fees to get transactions as fast as possible confirmed.
With bigger blocks will there be more than enough space at least for a while before blocks would get filled up. So fees could stay low.At least this is the theory.

Yeezus

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Quote from: BlackJacky on August 20, 2015, 02:42:03 AM

Hi all,

I just heard from an "expert" on Bloomberg that a higher blocksize will result in a lower btc price because more transactions will go through. But why will this result in a lower btc price?!?

Thanks in advance

Don't listen to so called experts. Most of them don't know what they're talking about. The drop in price will just be down to confusion, worry and panic if any. Once this who debacle gets sorted out I'm sure btc will climb back up again.

RustyNomad

sr. member

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Bloomberg might be one of the largest news services out there but trust me, don't believe everything they and or any other news service publish.

Check the facts before you take what they have to say as fact.

All of these news services are in it for the money and in order to generate that they need to publish relevant news. If they dont they dont get eyes on their material and if they don't get eyes on their material then they make no money.

So its almost a race to see who can publish the most news, whether entirely relevant or not, and in that race more often than not you will find badly researched articles, like the one mentioned here, which get published just for the sake of having something 'relevant' up on their site and or out on the news wires.

fulgdenea

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Quote from: BlackJacky on August 20, 2015, 02:42:03 AM

Hi all,

I just heard from an "expert" on Bloomberg that a higher blocksize will result in a lower btc price because more transactions will go through. But why will this result in a lower btc price?!?

Thanks in advance

That is report by stupid expert on Bloomberg is completely nonsense who don't know bitcion doesn't depend on more transaction, anyway that analysis is like by from a kid.

BlackJacky

full member

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Here you can watch the video...he is saying it at minute 2.4

http://www.bloomberg.com/news/videos/2015-08-19/bitcoin-xt-what-is-it-and-why-was-it-released-

I think he is refering to the "velocity of money" if there are more transactions the price is falling but applying that to the block size makes no sense to me too

HCLivess

legendary

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=== NODE IS OK! ==

the correlation comes from the economic theory of friction

the higher the friction - the slower the exchange rate - the higher the price

however, that hardly applies to bitcoin

S4VV4S

hero member

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Quote from: Kazimir on August 20, 2015, 02:50:38 AM

Complete and utter nonsense.

The block size limit MAY have an impact on the transaction fee, but that's something entirely different than the Bitcoin price itself.

^^^This.
Unless you are talking about the block size debate which does affect the price a bit then I too fail to see how a larger block size will drive the price down.
If anything, more transactions mean more tx fees and possibly more Bitcoin users joining in.

randy8777

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more transactions going through is a great advantage if you ask me. don't know why bloomberg "expert" is saying nonsense like this. some people just want to put their articles on the net without a quality check.

pedrog

legendary

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I also fail to see the correlation, can you point to the video or article?

Kazimir

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Complete and utter nonsense.

The block size limit MAY have an impact on the transaction fee, but that's something entirely different than the Bitcoin price itself.

BlackJacky

full member

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Merit: 100

Hi all,

I just heard from an "expert" on Bloomberg that a higher blocksize will result in a lower btc price because more transactions will go through. But why will this result in a lower btc price?!?

Thanks in advance

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