Bitcoin Forum

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

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.

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

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.

^^^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.

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

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

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. 

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.

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.

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.

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

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.

A Bloomberg Bitcoin expert. lol  ::)

exactly. please dont listen to bloomberg "news" or you are doomed  ::)
the experts are on this board and not on bloomberg.

I dont see any sense on this. If there is more demand and the supply stays the same, surely the price would go up? I mean what are other alternatives? Its nonsense.
This doesn't change the fact XT must be avoided. Im all for BIP101 but not for XT.

Please understand that the pragmatic reality is that Core will never increase its block size. So if we the people want bigger blocks it must be done through a hard fork, whether that is XT or another proposal. The ability to hard fork exists so that such disagreements can be resolved and so that we have the ability to disrupt the centralization of power that can come to exist within a development team.

OP could have misheard it. The "expert" could have said: Higher blocksize DEBATE have lowered bitcoin price. This I think is true.

The only correlation between blockszie and BTC price lies in the debate behind blocksize. If blocksize becomes a crontroversial issue (i.e. Bitcoin-XT/8MB blocks), then the price may drop due to tensions within the community, with some members becoming alienated. The value of Bitcoin is directly dependent on the community support behind it, after all.

hehe y...and bloombergs news, lol!!  ;D

i think he is talking about the possible double spend, or the possible usage of the double of your coins, which mean half the current price as a result, but it was only theorized, nothing is certain about this...

Another tale of mainstream media going at bitcoin :D Financial experts thinking this is their beloved fiat... How wrong can they be... They're going to get hurt if they enter Bitcoin with this attitude.

Anyways, he is probably referring to the uncertainty related to a blocksize increase, and not the increase itself.

I though the most interesting comment was made by the financial guy in a statement starting around 4:10......

"if we solve this problem with a solution that loosens the supply... we know what happens when you loosen monetary supply, you devalues the currency, and that is a real risk here."

This was the "Financial Expert" James McQuivey.  I researched him and he an "analyst" aka a blogger who writes such intriquing stories such a making money at Minecraft, "has apple thrown in the towel" and other nonsensical drivel desigged to feed the masses.

But here is the part that concerns me, because I do know a thing about the Media, and I know that they aren't naive enough to believe this nonsense (even though they may have intentionally picked 2 guests that are that naive).  So why are they intentionally putting out the mass thoughtwave that Bitcoin price is going to stabilize LOWER - even as it becomes more widespread?  You can't tell me that this isn't media manipulation.  Because they aren't that naive.

If this XT Fork wins, and if it becomes accepted AS THE BIG PLAYERS WANT then Bitcoin will shoot to the moon.  Looks more like an old Stock Market trick to me - trash the stock, and have your insiders buying it all the way down - right up to the point that they announce the secret that so&so just won some huge government bid and the Stock shoots to the moon.  Which is what Bitcoin will do IF IF IF this XT hurdle is crossed succesfully.  And again, even though I own bitcoins, I am not in a hurry to get rich with the current version of XT.

But the boig boys (Goldman Sachs / JpMorgan and a ton of others) they are all dumping Millions of Dollars into this space.  Investment Funding is surging over a Billion.  You think ALL they want is the ledger and the exchanges?  Heck, they want some Bitcoins to stuff inthese new vaults they are building also.  And these powerful old grey hairs NEVER pay more than they have to.  So they are scaring the crap out of everyone to let go of your bitcoins in a market that has a finite number of coins.  RIGHT NOW is the most crucial time in what is about to become the greatest wealth shift in the history of the world.

Be Wise.  Be Cunning.  Be Patient.  Be Careful.

Haha...
"Ph D's"...  :D

I don't think he understands the technical aspects, but at least he means well.

Well he better be talking about the XT fork uncertainty, otherwise he doesn't have a clue on what's he talking about. It always amazes me, all these so called experts that are analyzing Bitcoin. You would have to ask yourself do they do this on purpose, do they find un-competent people on purpose or they really can't find anybody that understand the Bitcoin technology to comment on it.

Higher fees means one of the major selling points is gone. Might as well use credit and debit

Cuz it introduces all kinds of technical issues. If xt ever happens (i doubt it) you'd see it turned into a shitcoin with problems to sync up and huge recource consumption. People will very easily go for another coin then.

Also the risk of two viable chains existing after fork will spook investors massively and btc won't be worth a lot anymore until the fork happens. Could be near worthless after fork.

I don't think bloomberg knows this and they are talking out of their ass as usual btw. 

I suggest that guy to get into mining, to make another fork with smaller blocks and see for himself if that raises BTC's price. I'm afraid this isn't going to work, but that expert probably won't believe it unless he sees it with his own eyes.

Price is fixed by market, which doesn't care at all about block size. The only thing which matters is demand, now and in the foreseeable future.

Bloomberg expert,forgot,nice way to get some money from bloomberg,world isfull of shit,highly paid experts

why want higher blocksize if price lower

It won't magically increase all sync time and recource consumption.. It is just future proofing the system so we don't have to deal with it when it starts to become a real problem...

He most probably did not say that it will result in a lower btc price but in a lower transaction fee. That is not true compared to now since the fees will stay the same as now. Though when we would keep the 1 MB block size limit then this would mean that at one points there are more transactions than the network can put in blocks. That would lead to higher fees paid because the higher a fee the higher the chance to get your transaction confirmed.

That's all. :)

dont watch bloomberg videos for educational purpose.