Biggest threats to the price of Bitcoin.

[Oilacris]

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...

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?

Yeah, majority do know about the possible threats but it would really be just too early for us and a stressful thing if we do continue to think up into those possibilities.

Yes it can happen but for sure in the future and might still takes time..Quantum tech etc etc. But i dont really see for the price to drop that low close to zero.

If it does then for sure there would be an another coin that will dominate in the market which is way more better yet technology does progress and more enhanced.

[jaysabi]

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?

Quantum computers that could crack the cipher is a distant risk, as is a sun flare that would knock out the internet. They exist, but aren't likely at all. What's far more a threat is price volatility and the low utility of the coin. It's just not useful as a currency. The other side of this is that it is now reaching more of a consensus about being a store of value (despite the volatility). The biggest threat is that people just stop believing it will hold value in the future, which is the only reason it has value now.

[exstasie]

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.

That's actually a popular theory among Bitcoin investors, that we should expect a binary outcome: either BTC is going to the moon (millions USD) or it's going near zero. Many believe an existential threat coming to fruition like QC breaking Bitcoin's security will result in the second outcome.

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 honestly don't see $5K in our future. Anything below $10K looks rather unlikely now too. But a 25-30% correction, a dip to $12K......that would just be Bitcoin being Bitcoin.

Historically, the furthest drop seen in a bull market like this was a bit more than 40%. From here, that's the mid-$9,000s.

[Lorence.xD]

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.

I have the same preparations right now, although the funds needed are still not enough. Whales could crash bitcoin if they all sold their shares. I do not think that there are no other threats to bitcoin than whales doing the unthinkable. A 5k drop will be unlikely in the foreseeable future but the chances of it happening is still uncertain which is why we should be prepared.

[jaberwock]

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?

The risk factors you have mentioned will make bitcoins worthless but bitcoin was designed to easily switch over to algorithm which means in future devs will create a stronger protocol which will withstand against quantum computing and all other possible treats to encryption. So, before the arrival of any such threats, we will be switch over to new secured environment.

I do not think that there are no other threats to bitcoin than whales doing the unthinkable.

Do not worry . Whales will lose their power over the time when more people will be participating into bitcoin adoption. Whales are not new just because of bitcoin ecosystem. All corporate stocks are still having gigantic whales and still performing well.

[Peanutswar]

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.

The price of the bitcoin today already surpasses the 10k dollars and this is a good sign actually the market price of the coin today from close to the 16k its drops again into a 15k well this is just normal because we didn't expect that the bitcoin will continuously be pumping around the 15k now we cannot see any other reason why it dumps because if you are trying to check the graph still it's on the bullish trend and this is a good sign we can see to the dream of ours which is the 20k dollar price. I think this could possibly happen.

[o_e_l_e_o]

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?

We think, based on some patterns evident in the ExtraNonce field of early blocks, that Satoshi mined around 1 million bitcoin, but we have no way of knowing that for sure unless he returns and signs a message from all the addresses he controls or something similar. If he were to try to sell all one million coins at once, then undoubtedly the price would crash, but that is based on the assumptions that he is still alive, he still has access to all his private keys, he did indeed mine one million coins, and he would want to make his own coins worthless by dumping the price so quickly.

What's far more a threat is price volatility and the low utility of the coin. It's just not useful as a currency.

Oh damn. Here's me using bitcoin as a currency on almost a daily basis, but just finding out it's not useful as a currency! Why do you say it is not useful as a currency? I can spend it for goods and services with better privacy, faster finality, more security, and lower fees, than I can with credit cards or PayPal. Just because there is not widespread adoption yet does not make it a bad currency.

[Pmalek]

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.

I think that if the government really wants to get you, they will find a way. Take the almost 70.000 BTC that were seized from the hacker Individual X a few days ago. It took years, but they did it. He used tumblers/mixers but was still caught in the end. 

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.

I am sure they would, and why wouldn't they? But the emphasis is on how quickly would it be fixed and be ready to be deployed. In the mealtime, the value would drop. Not to 0 or anywhere close. We have seen huge drops recently. I think 30-40% in a day during the first wave of the COVID-19 pandemic.

[Leviathan.007]

As I saw the details on your post, OP, you are mentioning some low prices such as 10K and 5K for bitcoin. But this can't be right, even is the marketed collapsed once again and prices falls, there won't be such target price. Because, there are two main factors to dump the price and collapse the market, first one is the technical issues which is currently unpredictable and the other one is the FUD which is far from bitcoin. That's why there is not much hope for bitcoin to see the prices bellow 5K once again. However, since we are talking about bitcoin and crypto world, everything can be possible in this market.

[kryptqnick]

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?

Overall, I would say a global consensus by governments restricting Bitcoin poses the biggest threat.

I tend to agree with that. EU, China and US banning Bitcoin could be enough to drive the price down to numbers we haven't seen in years. However, while something like this is possible in China, I don't think that EU and US could pull this off, as many people would oppose such a decision.
Quantum computers could destroy Bitcoin completely, but I think that the likelihood of humanity inventing such a powerful one is even smaller than top democracies outlawing Bitcoin.
Among real threats that can drive the price down are hacks of big exchanges (or, worse, exit scams), project laws banning Bitcoin, banks starting a serious war with cryptos. Bitcoin can recover from these, but it might take months to years to do so.

[EdenHazard]

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.

I have the same preparations right now, although the funds needed are still not enough. Whales could crash bitcoin if they all sold their shares. I do not think that there are no other threats to bitcoin than whales doing the unthinkable. A 5k drop will be unlikely in the foreseeable future but the chances of it happening is still uncertain which is why we should be prepared.

Funny to see people's reactions after yesterday correction down to $15k .. there's an immediate speculation popping up whether the rally going to the new all time high could be stalled or continues. Well linking those possible threats to bitcoin now just making weak hands shaking and leaving .. that's alright, the true believer will keep going no matter what. Those talking have been exist for quite a while , won't affect much.

I mean if the quantum computing did could break bitcoin encryption in the future , then just do it , we'll see. So far it's just a claim , everything just safe and fine.

[error08]

The most likely scenario for bitcoin to drop to $10K is vulnerable to hacking, if the hackers can break the safeguards of a big exchange like Binance and steal hundreds of thousands of bitcoins, then the price may get affected due to fud and manipulation, it's a good time for traders to dump their coin as well, sell at a high price and buy in the dip.
Well, it happened a few times throughout the history of bitcoin, does not rule out the possibility it will never happen again in the future, even if hackers succeed to crack bitcoin wallets that contain lots of bitcoin, the market may be affected.

[eaLiTy]

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?

The things that are mentioned in the article will not only affect BTCitcoin but will affect each and every aspect of everyone's life, i had a good laugh reading those, sun flares come one it will affect everything and the only thing that i could accept is a bug that could affect BTCitcoin and even if someone finds a bug the developers will be sorting out the issue but it might hurt the price but it will recover eventually, so it is not a big deal either.

[Darker45]

You don't have to imagine the biggest possible threats for Bitcoin to possibly sink below $10,000 or lower. It can go down that level anytime. We were below $5,000 just last March. That's just a few months ago. As I'm saying, it happens anytime. One large investor may dump thousands of his/her Bitcoin, the price would greatly decrease, the sheep and the weak hands would follow suit, and the price would go down. Forget about quantum computers. That has been sufficiently addressed several times.

[fiulpro]

I do believe even if you are thinking about quantum computers a lot the biggest threat would be:

- Government

They can seriously control Bitcoins on so many levels , even right now the government have issued partial or complete ban on the cryptocurrencies  in a lot of states and countries , which is most of the times aided by Banks : both private and public ones. Even if it's not illegal to use Bitcoins in that state or province they usually ban the accounts of people involved in trading.

I do believe the one thing that can actually make the price of Bitcoins fluctuate is : The control these governmental and private bodies have over the laws and on the people , what they can do and what they cannot.

It is true that they cannot control the price of Bitcoins completely but I do believe that at a certain level they can ..most of the time these laws and statements are followed by things like : 10 year in prison for someone who would use Bitcoins or other cryptocurrencies. Now this is Ridiculous.

[o_e_l_e_o]

But the emphasis is on how quickly would it be fixed and be ready to be deployed. In the mealtime, the value would drop. Not to 0 or anywhere close. We have seen huge drops recently. I think 30-40% in a day during the first wave of the COVID-19 pandemic.

The value would drop, sure, but I honestly don't think it would drop that significantly in such a hypothetical scenario. First of all, if the entire network cannot make transactions, then the only bitcoin which can be sold is that which is already on centralized exchanges. Second of all, a fix to such a critical bug would likely be deployed within a few hours. The value overflow incident, for example, was patched within around 90 minutes of the bug being exploited, with far fewer people working on the code then there is now. Third, if the price was falling solely due to a bug which everyone knew was going to be fixed within a few hours, then many would see that as a great time to buy the dip.

Quantum computers could destroy Bitcoin completely

Why? What's stopping us forking to a quantum-resistant algorithm?

[Silberman]

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.

I agree with this, people worry about quantum computers but even if they damaged the network repairing the issue will be as simple as forking the blockchain to the moment before they made their impact and change to a quantum resistant algorithm, those will be hard weeks for the price of bitcoin but technically everything will return to normal after the fork is over, as such the biggest challenge for bitcoin is political, if governments really decide to implement heavy penalties for the use of bitcoin many people will shy away from it and the only scenario in which this will not happen is if at the same time a huge crisis was happening, in that case many people will be willing to take the risk of using bitcoin even with the heavy penalties.

[wheelz1200]

Biggest threat to bitcoin is probably government position on cryptocurrency as a whole.  While i don't believe it could stymie it all together a dramatic change in crypto acceptance could short term impact the price into a big drop.  It would take a multi country ban for a big drop.

[Oceat]

It can go down that level anytime. We were below $5,000 just last March.

The same thing I was thinking–the market is just too volatile that you less expect it the more it will happen. But don't worry we aren't at the bearish trend yet so there's a chance that the market would go pump again but that time would be to the moon.

One large investor may dump thousands of his/her Bitcoin, the price would greatly decrease, the sheep and the weak hands would follow suit, and the price would go down.

I am trying to find these big investors dumping large coins but they occasionally dump.
Do you think exchanges moving coins would affect the price?

[CODE200]

Biggest threat to bitcoin is probably government position on cryptocurrency as a whole.  While i don't believe it could stymie it all together a dramatic change in crypto acceptance could short term impact the price into a big drop.  It would take a multi country ban for a big drop.

There are already countries wherein it is accepted so I guess they won't do such thing as having a total ban of cryptos. But that's really the problem of this technology, wide  acceptance as a currency. People and governments are still in doubt of its usefulness. Some are against decentralisation since there will be no taxation. But regulations are now seen in some countries, and we still don't know if its long term effect will benefit this industry in general. Will Bitcoin still be desired if there will be changes in its features, in the future?