Topic: Why is the price dropping? - page 5. (Read 7937 times)

Correct. this volatility is something that will follow bitcoin for many years to come. You should no be afraid, it's just something that you get used to.
There was a time for up 9 months, and now the time for down is coming.

The price is still very volatile. It dropped to $630 from $780 again. it will take many years to be stable.

The price of the bitcoin just rose 70 dollars in the last 24 hours. It is still very volatile after so many years.

Yes. The bitcoin price is still quite volatile. It is much less volatile than a few years ago. 5% a day is normal.

I think it is just the normal correction after the recent big price rise. If the price drop below $500, I might be worried.

Loyce how doed the price affect u. U can't even boast of 3$ worth of btc. Sorry I forgot u depend on giveaways and to tips sobu might have it. BTW where are you, I wanna fly over and come beat u up

Every 10 minutes (on average) a batch of transactions is processed by a miner and a block is added to the blockchain, than that miner gets a reward for it.

Originally this reward was 50 bitcoin, but in 2012 it halved to 25 bitcoin and in july this will half again to 12.5 bitcoin.

This means that every 10 minutes there will be less new bitcoins generated than before, which means there will be less inflation, and miners will make less bitcoin.

Since miners are one of the main sources of bitcoin (they usually sell much more than they buy) this means that supply will decrease in the long run (it might not decrease in the short run, because people may have been hoarding coins to sell later), and a decreased supply, assuming equal demand, means higher prices.

On top of that the miners will try to drive the price upwards because they would like to still have a roughly equal amount of profit for their bitcoins in terms of dollars. Since they get half the bitcoin now, they'd need the price to double to remain equally profitable.

That's why many people expect the price to rise.

And that expectation is probably right too, because after the halving in late 2012 we all know that the bubble of 2013 took place, where the price rose from $12 to $1244 because there were 2 bubbles in 2013 both of which increased the price 10-fold.

Please explain me what is that all about this halving story?!
Why should the price going up for this event?
A lot idiotic question sorry about that.
But we can all learn  new stuff by asking

$550 will be achieved in next month, Price is moving up like anything, and if everything goes fine we may see this price even in next week.

I am not sure the price will be around $800 at the time of halving. I expect it to be around $550 at the time.

It will touch $600 before July now and I am sure price will be around $800 at the time of halving, so I am holding my coins now and will sell only at halving.

The price is not dropping now and it needs also a longer time to rise so it have to be more worth also and that would be nice if that is possible.
But the halving is also coming and the most are hoping/thinking that the value will rise soon so they can also sell it with a lot of profit.

It touched $550 yesterday already for a moment. Now it's about $20 under the peak. I'm guessing $600 in July now. But that's just speculation of course

That is right. The price hit $500 two days ago. It is around $520 now. It might be $550 in early June.

The price is not dropping at the moment but rising and it is currently on its way to hit $500. It can be true that the price has dropt a bit i the process but I am sure that it is going rise short after that again.

There are allot of people who are just holding their coins and dont do anything with them so thats why the price is dropping that much because no one is using the coin right now. Off course this means not for everyone but there are allot of.

I hold most of the coins at the moment. I think the price could rise to $800 to $1000 later this year.

The price is not reducing now and the best thing that you can do now with Bitcoin is to wait for a higher value and that can be nice.
But the bad thing is that you need some profit and that is perfect for the people with Bitcoin.

It could be (to some degree) an effect of DAO crowdfunding. They're the most successful campaign in the history with over $164m raised so far.

They only accept ETH, so I reckon there must have been lots of people who dumped BTC for ETH in order to buy in to DAO. ETH price going up seems to confirm this.

Other factor could be disagreements within Core devs/Blockstream team (G. Maxwell calling Adam Back/Luke Jr dipshits etc).

i also think the price will go up when 2mb blocks are implenented, but the only question is, how long will the impact of the block size increase remain visible?