Topic: what is the reason why bitcoin going down and how they manage to recover again (Read 286 times)

Well LN is much better suited for microtransactions, I agree with that point. If it was really meant to cover microtransactions (anything below $5) then maybe it might work (although my other concerns remain). But how does a user process 'regular' transactions then, like $25, $50 or $100 or even $1000 transactions? Pretty much NOBODY in the world has been using BTC, compared to regular payment systems, and already fees shot over $65. How do you see that then ?

Still no one knows, because there aren't solid proofs about why it is really going down right now.

But after all, it will go up, the problem in here is  "when"

Anyway, just use this opportunity to keep buying as much as you can.

You are trying to find reasons that why it'd fail so you are under-estimating the capabilities of a complex network, when fully deployed. LN is supposed to solve the problem of micro transactions particularly. These transactions are never going to be worth more than a fraction of a BTC (at present values).

The number of people who hold these amounts are not trivial. The number of people who would be willing to act as a hub will determine the success of the network. If you have enough people ready to commit part of their holdings to a payment channel for a fixed time, you will have sufficient routes available for any transaction. For the large transactions, there already is on-chain settlement.

I can't wait to see it in action and am going to look for reasons as to why it will work, rather than why it won't because clearly, there are no other ideas we have seen implemented or tested for scaling as yet.

Also, its quite easy to point out why a complex system won't work. Turbo-generators weigh multiple tons but they still rotate at mindblowiing speeds of 3000-3600 RPM suspended on a layer of oil. By all accounts, it seems intuitively pretty tough.
Any complex man-made system doesn't seem to work intuitively until it actually does.

Since the price of bitcoin is reducing so,we can use this as an advantage and use to inverse our money and get very more profit for the low investment.We can hope the price of bitcoin will soon recover it's own value of 19,000$ and then it will reach 20,000$.
I suggest you to inverse your life savings money in bitcoin.This is the time to buy and not to sell,keep this is mind and avoid of panic selling.

Probably, there are many reasons which led to this unexpected decline (There is a decrease of 15% in last seven days) and what happened is disappointing.

Furthermore, The main reasons are firstly the fees which it is so high ($ 10 in this day) and secondly the problem of transactions and for example at this moment there is more than 170 500 Unconfirmed transactions in blockchain and this number is very huge.

In addition to that, I guess that if these two problems will solved, then the price of bitcoin will return to the height (and may become more than 20K after small period).

They make some excellent points. In short, I see LN fail because it's a really dumb system. Users have to be online 24/7 to form part of a payment route, the user with the lowest amount of money determines how much you can pay in that route (big LOL!), extreme data transfers are needed because the network needs to know the state of everybody's payment channel all of the time in order to discover routes, wiring BTC into/out of your payment channel still is an on-chain transaction, users can defraud each other in a payment channel, no guarantee you can pay the person you'd like to pay etc etc etc

There is only reason that its price is going little down I think a lot of people again start holding because if you remember last month its price was very high but then in last week its price become low and then after few days its jump to high because some of the people they start selling bitcoin but when they fell that’s its price is going more high then again they keep it hold which make bitcoin price down and now a days bitcoin price is again going low.

The medium article has been refuted quite a few times in the comments section. I wouldn't read much into the article because of the assumptions made there. The writer has changed his position in subsequent comments to "It won't work because the central entities would be too large". This is again a big assumption. Any type of payment channels can be established between parties depending on the amount of funds they move. Some will be large, some will be small.

Just the kind of assumption that people have been making from Day 1. We all have the bias of presenting our opinions as facts. That is what you are doing here.
Just hear yourself. "LN won't work", "BTC will fail as payment system", "China and Korea will ban BTC". Any other major predictions you feel like making today?? Ohh and lets please make this a positive discussion. Nobody likes FUD on the forum.

Also make sure to read this: https://medium.com/@jonaldfyookball/mathematical-proof-that-the-lightning-network-cannot-be-a-decentralized-bitcoin-scaling-solution-1b8147650800

Until it doesn't recover anymore and the 'smart people' have lost everything. I don't know if this will happen anytime soon (nobody knows) but I'm confident it WILL happen one day. I do see that more and more people start to realize that BTC failed as payment system and LN won't be a real solution. And then countries like China and Korea banning BTC alltogether ... The future looks pretty bleak for BTC.

The main reason is FUD because it is reported that South Korea will ban Cryptos, there's a lot of panic and price crashes. How does the price recover? The panic subsides as the smart people hold and the smarter people purchases more coins from the weak hands until there are no panickers left.

Along with the FUDs and high transaction fees, I think another reason why the bitcoin price went is because all the new and FOMO buyers has stopped buying. It reached a peak and rapidly increased last year because there was a sudden surge of new buyers who didn't want to miss out on the hype.

Now, bitcoin is settling on the price of those who still continue to support and are strong hodlers. There is a continuous retracement because of this support by many bitcoin users. Despite the numerous FUDs and crazy transaction fees, many still continue to HODL so it remains at about $13K. Expect it to rise again and possibly reach another boundary of $20K possibly. Soon it will be time for the others to profit.

From a little article I read, that there is some outrage been faced by most crypto bodies like coinbase, Gemini  and Bitstapm etc. Has been the cost of the price drop, and also from GDAX tweet, from their twitter handle.

Wow, are you seriously asking this? you are so desperated for this.

The price has been going down in the last few hours because there was a massive FUD, nothing more than that, you guys seriously need to stop worrying about the price changes.

And just like it always happens, the price is suddenly going to recover and you all are going to say "well, why have i sold?"

Some time when bitcoin prices is going down is due to the corrections after a long upward movement of bitcoin pricing and most times bad and rumors news that do come out about. We have to actually prepared for this two things if we actually want to make it big in cryptocurrency. You should buy the rumors and sell the news if the fundamental of this market and don't expect everyone to be right always do your own research about any coins.

You're so correct.
The crazy ascent to ~$20,000 started from ~$11,000 level because I can remember very well I wanted to buy some coins a Tuesday morning (local time) and was waiting for it to come down from 11500 but on the contrary it took speed and raced through to $20k.

Normally, $13,000 is a very reasonable base after kicking off from around $11,500 price.

You can't be more correct @TERA2

Google "Bitcoin Price News" and from there you can made a speculation on why bitcoin moves much recently. Not an exact reason but you can take that as reference. And besides if you will check the recent price movement, the price is extremely experiencing a roller coaster movement where the margin of + and - are almost equal.

And now for you question about how it will recover again, don't think too much and just watched how the price moved. It may be brought up by positive speculation or something else. We can't tell exactly what will happened so just go with the flow.

Just a few months back there was similar huge FUD about China banning bitcoin. (This time its Korea). I was a relative newcomer back then and the price dipped to almost 5000 USD which was way below my initial entry-point. Guess what, I panicked like every other newcomer and instead of holding or buying, sold.

Regretted it within the month as it soared again. These things keep happening. The FUD is particularly strong this time because of the high transaction fees and stuck transactions combined with the twitter handle @bitcoin and blockexplorer being co-opted by bcash marketing machinery.
The more important question that you asked is how it'll manage to recover. Looks like its not answered yet, so here's the reasons why i believe it will recover:

1. The new wave of entrants will realize that just having bigger blocks is only a temporary solution and the really serious efforts for scaling are actually spearheaded by bitcoin and not by the hundred of clones.
2. Discussion will move onto LN and terms like malleability, payment channels and decentralization will take centre-stage.
3. Another wave of people will realize that bitcoin doesn't just aim to be a retail currency but a settlement currency. Its another matter that you can buy all the coffees you want once LN is properly deployed and in vogue.

Don't worry. Just Read, Learn and Hold.

If you have already gone through the basics of Bitcoin, watch this for intro to LN:
https://youtu.be/8zVzw912wPo

Look at the problems involved and solutions being processed. Its exciting!

There are two major possible reasons:

1) As others have mentioned, the fees have kind of killed Bitcoin's utility as a currency. The fees are only worth it if you're transferring large amounts, and even then it's going to take a while to confirm unless you pay an absurd amount. This problem doesn't look like it will go away until we get significant Segwit adoption, or get the Lightning Network, and we don't know when either will happen. I'm guessing this is turning off some people.

2) The South Korean market uncertainty -- news outlets are reporting that South Korea plans to ban Bitcoin trading through exchanges a la China. This is a significant blow considering the size of their cryptocurrency market. Their biggest exchanges were also raided under the guise of tax evasion, so saying their government is hostile to crypto would be an understatement. Pretty much every altcoin is down too, so I'd say this is a likely reason.

Of course, it could just be Bitcoin's volatility at work again. Recovery is always unpredictable, but it always comes anyway. I wouldn't worry about it.

Well, there are no major cause than the normal market fluctuation as a result of the forces of demand and supply. There has been a high demand for ethereum at the detriment of bitcoin as a result of the high transaction fee couple with FUD in some countries like korea.

The main reason is the high cost of transactions resulting in slow confirmation times which everyone here has experience one time or another in their bitcoin journey. And this is the main argument that has been going on for years, specially for those who love to attack bitcoin. As far are how bitcoin manage to recover, if there's some positive news surrounding the market, it will slowly push the price and possible go for another massive bull run because everyone doesn't want to miss the hype train to make profits. Case in point, check the history of bitcoin early last year (Jan-Apr). Around February, there were noise that SEC will accept Winklevoss twins bitcoin ETF proposal, we see a massive pump surpassing $2,000 if I'm not mistaken. But when the news comes out that SEC rejected it, the market crash, a pullback of ~$1000. And then in March or April, Japan enter the picture another bullrun started pushing the price to go even further. And now the rest is history. That's how the market works in a nutshell.