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1  Bitcoin / Development & Technical Discussion / Re: Trying to understand Bitcoin original paper, Transaction section on: January 23, 2024, 10:42:21 AM
Learning Bitcoin technical detail from whitepaper isn't best idea. I'd suggest to use easier learning resource such as https://learnmeabitcoin.com/technical/.

- Agent 2 uses a hash function with inputs: the previous message (1) and its own public key (2), the output is the "signature" of the previous agent (agent 1) (3)

Owner 2 doesn't do anything on 2nd transaction. Owner 1 use hash of 1st transaction (1) and specify that he want to send Bitcoin to owner 2 (2).

- At the same time, agent 1 uses its private key to "sign" (4) its own signature that was generated by agent 2 (I must have missed something here)

Actually 2nd transaction means owner 1 send Bitcoin to owner 2.

- Also, agent 1 can verify its own signature (5)... it does not makes sense to me either

IIRC it actually means anyone can use owner's 1 public key to verify whether owner's 1 signature is valid or not.

p.s.: I used the "img" tag wrongly I think, I did this:   [ img  ]url_of_image [  / img], if any knows how to correct this..

1. You need to use raw image link such as https://i.ibb.co/6rkP4Pk/Sans-titre.png (not https://ibb.co/Xjqszsq).
2. If you use img tag as newbie, this forum simply show the image url.


thanks for the resource.

Regarding the explanations you provided, I still don't get it  Cry

Maybe explaning what each number (in red) corresponds to, would work

I will try the resource you sent anyway
2  Bitcoin / Development & Technical Discussion / Trying to understand Bitcoin original paper, Transaction section on: January 23, 2024, 08:03:06 AM
Hi,


In BTC paper, "Transaction" section.



What I understand from this schema is:

- Agent 2 uses a hash function with inputs: the previous message (1) and its own public key (2), the output is the "signature" of the previous agent (agent 1) (3)

- At the same time, agent 1 uses its private key to "sign" (4) its own signature that was generated by agent 2 (I must have missed something here)

- Also, agent 1 can verify its own signature (5)... it does not makes sense to me either


Thanks for your help

3  Economy / Speculation / Re: what sort of btc transaction results in a visible price move on btc ? on: January 20, 2024, 10:49:02 PM

- when an exchange receives BTC = probable big sell => bearish

- when an exchange "loses" a big amount of BTC (<=> withdrawals), it creates some scarcity and btc increases

- when an institution decides to buy, it does not announce but we know it at some point, and it could incentivize people to buy BTC, so the price might increase

- when an institution decides to sell and announces it, people could associate this with a loss of value, so the price could decrease


First question yes when a big amount or volume of bitcoin is sent to an exchange it is mostly for sale because no one actually keeps a large amount of bitcoin on an exchange, so it is a direct sell off and could affect the market depending on the number of sellers and the volume or amount of bitcoin.

When large funds are withdrawn from exchanges it is mostly bought and transferring them to a personal wallet signals a sign to investors that the movers are looking to hold for long and many will react to this depending again on the volume bought

Institutions announcing there sale or buys are just trying to cause FOMO in the market by making it public nothing much the price doesn’t do a significant change on this


thanks for the insights
4  Economy / Speculation / Re: what sort of btc transaction results in a visible price move on btc ? on: January 20, 2024, 08:57:16 PM
So, to wrap up from your answers, in order to look for the influence of BTC movements on its price, I should check the following kinds of transactions (only when big money is involved of course):


- when an exchange receives BTC = probable big sell => bearish

- when an exchange "loses" a big amount of BTC (<=> withdrawals), it creates some scarcity and btc increases

- when an institution decides to buy, it does not announce but we know it at some point, and it could incentivize people to buy BTC, so the price might increase

- when an institution decides to sell and announces it, people could associate this with a loss of value, so the price could decrease

- regarding the mining pools, I don't know what to think


5  Economy / Speculation / Re: what sort of btc transaction results in a visible price move on btc ? on: January 20, 2024, 07:07:41 PM
Well transactions on the Bitcoin network affects the price of Bitcoin minimally. Significant changes in Bitcoin price can be as a result of conjestions on the mempool.

This is not entirely correct as congestion on the mempool doesn’t trigger the price, the bitcoin network is compromising of other tokens too like BRC20 tokens which we have seen that there movement has actually caused a congestion on the mempool, so this doesn’t have any effect on bitcoin entirely but did congested the mempool. Another example is when a bitcoin is moved there is no guarantee that it is sold it could be transferred from a wallet to an exchange or vice verse which still keeps the supply and the demand; which are the two things that actually trigger a change of bitcoin price.


- who is the sender and who is the receiver. For instance, if I (the receiver) buy 10k BTCs on Binance (the sender), I guess this could result in an increase of the BTC price (?).

No this doesn’t increase the the Market price to a significant degree, more volume is needed to be moved which could at least trigger a reaction from the community before we see a market price change, example is a move of thousands or probably millions of bitcoin by many whales or miners to somewhere like exchange will cause a market shift to bearish as there will be fear of losing out, a reverse case to somewhere like wallet will cause a market raise due to FOMO

Thanks, yes this was my question actually, i.e. how to identify a transaction that might result in a bearish or bullish price movement

So, to summarize, if some people sells off a lot of bitcoins to Binance, this should/could result in a bearish. And vice versa

I would love to see this in action, but for this I would need to 1) be able to see the transactions happening in the blockchain 2) filter out only the huge transactions (that may appear extremly rarely I guess, 3) observe the bitcoin price

I know how to do 3) but not the two others, any idea ?







6  Economy / Speculation / Re: what sort of btc transaction results in a visible price move on btc ? on: January 20, 2024, 06:44:16 PM
What kind of transaction are you taking about here? Withdrawing over a few hundred thousand dollars from a crypto exchange won't even be enough to shake the market in both positive and negative aspects.
 
And just sending a few dollars as well from your private wallet to an exchange wallet can't also be able to affect the market price.

The only time I think a trade or transaction will be able to affect the market price is if miners decide to offload some of their reserve, which could amount to thousands of bitcoin being placed for sale in the market, at which point pulling off such a large amount from a single exchange will be enough to cause a negative impact on the market.

Of course the amount of btc transfered would have to be enourmous, I am conscious of this. As a small example, for 1$ move on the btc price, it would require a transaction worth around 250 millions dollars.

My question is more: what type of sender / receiver correspond to what type of move (bull / bear). For example: if Binance send 250m dollars of bitcoin to somebody (meaning the person bought these bitcoins on Binance), what is the impact ? the price goes up ?

But maybe I was not very clear
7  Economy / Speculation / Re: what sort of btc transaction results in a visible price move on btc ? on: January 20, 2024, 06:14:31 PM
Well transactions on the Bitcoin network affects the price of Bitcoin minimally. Significant changes in Bitcoin price can be as a result of conjestions on the mempool.
Most times price is also influenced by adoption rate and hodling rate. If all whales should suddenly sell most of their Bitcoins, the price of Bitcoin will definitely go down. And the more people hodl it becomes scarce and thus the price increases. Many other factors like halving and ordinals can also affect Bitcoin price.

thanks, could you clarify what do you mean by "a result of conjestions on the mempool" ?

Also I am not familiar with the other notions you mentioned (adoption and holding rate) but I will look into it
8  Economy / Speculation / what sort of btc transaction results in a visible price move on btc ? on: January 20, 2024, 05:15:07 PM
Hello,


I would like to know what types of transactions on the BTC blockchain would be responsible for a consequent move of the BTC price (e.g. a move of 4USDT)

I guess several criterias are to be taken into account:

- the amount of the transaction, I guess at least 1000s of btcs would be required to have an effect on the price. Do you have any idea ?


- who is the sender and who is the receiver. For instance, if I (the receiver) buy 10k BTCs on Binance (the sender), I guess this could result in an increase of the BTC price (?).




Thanks
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