Biggest threats to the price of Bitcoin.

[Bergkampsballs]

Hi,

As everybody keeps pointing out that Bitcoin is a risky investment, I'm trying to get a better understanding of the greatest risks to my coin.

I must admit that sun flares and quantum computers were not what I was expecting to find when I googled this but alas...

https://medium.com/coinmonks/the-5-biggest-threats-for-bitcoin-that-have-the-potential-to-destroy-it-9b3845ebcd1d

https://decrypt.co/29625/the-biggest-threats-to-bitcoin-in-2020

To be fair, I think these sources are talking about things that would all but wipe out Bitcoin rather than just reducing the price.

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?

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[Bekuciwu9]

About your question,what could case bitcoin to go below $5,000 are the whales taking the profit therefore dumping the price.You dont  need any big external factor,just big traders taking the profit,and then later on buying it cheaper,increasing their stack.Thats what all of us should do really,see dump as opportunity to increase bags and not panick and worry about future of bitcoin.

[Bergkampsballs]

About your question,what could case bitcoin to go below $5,000 are the whales taking the profit therefore dumping the price.You dont  need any big external factor,just big traders taking the profit,and then later on buying it cheaper,increasing their stack.Thats what all of us should do really,see dump as opportunity to increase bags and not panick and worry about future of bitcoin.

OK great, this is something that I should probably be wary of. What do you think the chances are that this will happen anytime soon?

How would you be able to predict this happening, notice when it is happening and sell out before the crash?

[Bekuciwu9]

OK great, what do you think the chances are that this will happen anytime soon?

How would you be able to predict this happening, notice when it is happening and sell out before the crash?

It is hard to say really,many are expecting that to happen,bigger or smaller dip before we go for $20,000 but bitcoin might surprise us all and go straight over 20 thousands first and then make correction.
I gave up on predictions as i suck at that,so all i do is hold.I would suggest that to every noob in crypto,it is the safest method.

Good place for predictions is wall observer thread
https://bitcointalk.org/index.php?topic=178336.0

[Upgrade00]

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?

In my opinion, this could either be caused by the discovery of vulnerability in the network or government policies which limits its usage.
A vulnerability while possible, is unlikely. The network has a difficulty barrier which prevents malicious attacks and limits the effects in such a situation. It is also fully decentralized, so there is no central server or body which can be exploited and lead to a crash.

Government regulations; such as an outright ban or use of strict policies could have a huge negative impact on Bitcoin. However,
• Such a ban may need to be synchronized to have a real effect. Bitcoin currently has different legal stance in many countries, ranging from places with tight restrictions or bans to places which encourages its usage.
• The effect of a ban would likely not be long lasting, people can always move out from places with tight restrictions to more enabling environments, thereby creating an economic risk for countries which aims at stringent laws.

Overall, I would say a global consensus by governments restricting Bitcoin poses the biggest threat.
There is still one major threat which Bitcoin faces, and this comes from the community. If majority of Bitcoin users traded their autonomy and privacy for convenience by accessing it through centralized platforms, Bitcoin could become another digital fiat, losing it's unique qualities.
While this may not have an instant impact on the market, it could overtime become more significant as governments would be able to control Bitcoin effectively (freeze coins and prevent certain transactions).

[20kevin20]

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?

A strong push against Bitcoin by top world powers such as the US. This would heavily impact the price and I think it's the most likely thing to happen.

Things such as Quantum Computers are repairable. I'd have to guess if QCs turned out to be a real danger, we'd just fork off Bitcoin to a QC-resistant fork. There are ways to go around it, even if the impact's already been done. Same goes for software bugs: they existed before and were fixed very quick. Solar flares really do create way larger issues than Bitcoin though, although the article says this shouldn't be the right way to think. Like, I'm sorry but I think the world would immediately go absolutely crazy if all communication was suddenly cut by such an event. It's similar to EMP attack scenarios - I would care more about my safety and life than about all those devices that'll be affected by it.

[Pmalek]

The sudden inability to send or confirm transactions or the discovery of a critical vulnerability that would require a hard fork, which would divide the community, would be some other scenarios. If all Chinese mining firms would stop their operations, that would drop the hashrate significantly and cause some panic about what is going on.

[mk4]

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?

I'm guessing, something big probably like the United States government illegalizing the ownership of bitcoin. I know, people still could hold bitcoin regardless and stay under the radar assuming they know what they're doing(with them not messing up their privacy), but this is probably when fear will be at it's peak.

[Jawhead999]

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?

Yes it's possible as you can see in this interesting fact Bitcoin Yearly Lows
The most changed (%) overall years is 97%, so the lowest price in 2021 might be 3850-7584.5 ((3850 + (3850 x 97%)

[o_e_l_e_o]

A vulnerability while possible, is unlikely. The network has a difficulty barrier which prevents malicious attacks and limits the effects in such a situation. It is also fully decentralized, so there is no central server or body which can be exploited and lead to a crash.

Neither the combined honest hash power which sets a high difficulty for mining a block, nor the fact that blockchain is decentralized, protects against a vulnerability in the code. They both do increase the security against certain factors - the hash power against a 51% attack, and decentralization against a single entity seizing control of the network - but vulnerabilities or bugs in the code can and do happen despite all the eyes on it. Sometimes they are picked up and patched before they can be exploited, and in other cases they are exploited first and require emergency patches to be deployed.

The sudden inability to send or confirm transactions or the discovery of a critical vulnerability that would require a hard fork, which would divide the community

I don't think it would. The community - miners, nodes, developers, etc. - are all invested in to bitcoin. If bitcoin disappears or falls to zero, then they lose a significant amount of money, time, resources, etc. If there was suddenly some critical vulnerability discovered which allowed someone to DDOS the entire network and prevent all transactions, all honest users would accept a fork to fix it very quickly.

[Insanerman]

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?

Actually, the links you've indicated in the OP already listed the far most possible way to eradicate or just break the high price of the BTC. There are no other possible options that might affect and drastically decrease the price of the Bitcoin, as it was already being popular from time to time, regardless of the situation and the global issues. But one thing is the nearest possible idea that could affect the price soon -- the government. Any government has a power to make a law that could affect not the Bitcoin per se, but its holders and investors, in which could possibly inflict a little trigger to lower the price of the BItcoin, especially if such government and its country holds a huge number of crypto enthusiasts.

[oHnK]

The possibility that could cause bitcoin price to drop drastically I can conclude is that the wholesalers are short selling, they are selling a large amount of their bitcoins to cause panic from the small traders and all join in selling so the price falls and they buy back cheaply.  The government can also make bitcoin prices fall, when all countries prohibit transactions related to bitcoin, inevitably the bitcoin price will fall.  Another is when there is a negative issue related to bitcoin, where there is a massive hacker attack on the digital exchange, this issue can make many traders worry and immediately exchange their bitcoin for other assets.  And when bitcoin has a more profitable competitor than bitcoin, it will soon be abandoned.

[ReiMomo]

Let me give you a piece of advice. "WHALES WILL NEVER DO STUPID THING SUCH AS DUMPING HIGH AMOUNT OF THEIR ASSETS." That's suicide.

Whales are whales for some reason. They keep their money out of fiats for some reason. If they will dump, the possibility is, they will attract what they avoid. Partials and storing the value is the solution they have so you don't have to worry about them. Just keep on holding until your profit was there.

[jossiel]

As of now, it's here to stay.

No matter what threat will come out to bitcoin, it will stay even stronger.

Remember when there's a fork of bitcoin cash and there's a division of miners and said they'll stop supporting bitcoin and instead, they were a full force to bitcoin cash. But what happened? We can see now which coin is dominating.

It's said before about quantum computers are going to be a threat but bitcoin has surpassed a lot of those threats. The possible cause for it to dump is the whales to dump huge amounts.

[Bergkampsballs]

Let me give you a piece of advice. "WHALES WILL NEVER DO STUPID THING SUCH AS DUMPING HIGH AMOUNT OF THEIR ASSETS." That's suicide.

Whales are whales for some reason. They keep their money out of fiats for some reason. If they will dump, the possibility is, they will attract what they avoid. Partials and storing the value is the solution they have so you don't have to worry about them. Just keep on holding until your profit was there.

This is the first time I've heard this. Everybody else seems to think the opposite. I'm not saying you're wrong but I'm just wondering, does anybody else agree with the above statement?

[Bergkampsballs]

OK, so from what most people are saying there's 2 main concerns. Whales all dumping at the same time to buy up cheap later on and government regulations.

Is there any method of somehow finding out when the whales are getting ready to drop or being alerted when they have so that you can take the necessary precautions ASAP?

I'm guessing with the government regulations thing it's just a case of keeping on top of the news coming out of bitcoin websites and forums like this?

[o_e_l_e_o]

Does anybody else agree with the above statement?

I have seen no good evidence that decreases in price are linked to these mythical "whales" dumping their coins.

Users with large amounts of coins to sell aren't doing it on a centralized exchange, since as the price falls they get less fiat for the coins they are selling. They are going to sell their coins with an OTC provider, which will have little effect on the current price.

Is there any method of somehow finding out when the whales are getting ready to drop or being alerted when they have so that you can take the necessary precautions ASAP?

There will no doubt be a flurry of posts recommending the "Whale Alert" twitter, but you should pay no attention to it. The vast majority of transactions it reports are simply large exchanges or services moving coins around, and are in no way linked to price movements.

[crzy]

When government making pressure with Bitcoin, usually investor are panicking and if every country will do this, then we might see another bottom with bitcoin. But since the adoption is already happening, I’m confident that we wont touch the price of $5k again, so don’t wait for that price before you buy.

[FlightyPouch]

Also whales. It is not that they control the price of bitcoin or bitcoin itself but it is just that they could manipulate the price and also, they could just dump all of their balances creating a huge impact on the price. Another thing is the bug that the uppers posts already mention, talking about dumping Satoshi holds a million bitcoins, that could mean he is also a threat at that context, right?

[aesma]

One major risk is weak hands. Selling on a crash. Don't do that. Buy more, instead.

Personally I'm ready for the price to go back to about 5000$, my buy orders are already set up. If we go there and stay for a time, I will buy more.