Biggest threats to the price of Bitcoin.

[Bergkampsballs]

The threat in its market value I think is total prohibition of its usage for some reason if there is any. This is more likely something that will ruin its price.

And I never thought this kind of ban would apply to bitcoin. Some countries may be able to prohibit its circulation and also prohibit market activities in that country for various reason. But absolutely don't think a mass ban will happen to bitcoin in the future. Still very unlikely, mate.

In my opinion, the biggest threat to the price of bitcoin is the whale, because their activity in the market often bring disaster to the price of bitcoin even though it is only temporary until the price finally recover. Then I thought, if the bitcoin we are currently using is still in the testing phase then I think it's possible to have a new, bigger idea with better improvement. This can affect the price of bitcoin, but it's not a threat as long as the idea isn't born.

It is obvious that countries are moving more towards regulation rather than banning this market, to begin with the excuse they tried to use about cryptocurrencies being used only for criminal activities is not only not true but as this market becomes more popular the volume of those transactions becomes even smaller so they do not have a lot of ground to try to ban it, also with the economic situation they are in which most countries are incredibly indebted they need all the taxes they can get and if that means tolerating this market for a while then they are going to do it.

Countries are now facing hard economic situation. To come out of the same now everywhere money flow is required. With the regulation of cryptocurrency usage the money flow can be increased. With the regulation cryptomarket too gets more mature. Right now it is easy to locate bitcoin accepted services in few countries. The same scenario needs to happen with almost every country. As the market is manipulative there will be large marginal fluctuation which shouldn't be considered a threat to the price.

I wasn't actually sure why government regulation would be good for Bitcoin myself so had a little google and found an interesting article which does well to explain why government regulations create legitimacy and trust in currencies.

https://www.coindesk.com/regulation-help-bitcoin

Here's an excerpt that I thought was quite interesting:

"Money and state

Money is a social construct. History shows us anything – wooden sticks, huge stones, coins, gold, boxes of detergent and now, bits of enigmatic computer code – can function as money.

Any meaning we attach is imparted through the polyglot of social interactions – status, social conformity and human behaviour – that money encodes. Without the trust born of these, no medium of exchange can exist. Even when two nations trade, the money exchanged needs to be credible and convertible, which is why they often use a reserve currency, such as the US dollar.

But for a currency to become widespread, lots of people need to accept it. That implies the presence of society and the overarching institutions it creates. In other words, it presupposes the existence of a dominant state that can influence the behaviour of individuals. The currencies that succeed, therefore, are not those that circumvent the state, but rather those that are legitimised by the state.

Once the state accepts said trinkets – digital or otherwise – and starts to regulate them, you also drive individuals to find new ways of acquiring this new medium. They now work for others, trade goods or services, and importantly, begin to use this new medium as a pervasive social hierarchy begins to emerge.

History demonstrates this time and time again. Most notably, in 1100, Henry I of England issued an edict that going forward, taxes could only be paid using tallies – humble wooden sticks. He also prescribed their form – rudimentary medieval regulation – stating that each tally was to be cleaved in half between debtor and creditor, with the sum of money represented by an abacus of carefully delineated notches.

The results were dramatic. Growing confidence created a natural demand. The need to acquire the sticks for taxes meant that transactions began to be done using them. For the next seven centuries, wood passed as proxy for money and the English even evolved a sophisticated system of government financing based around tallies."

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[darewaller]

Price of bitcoin shouldn't really matter to us at certain levels, sure if it goes under 5k once again it could be dangerous, and if anything else ever passes bitcoin it could very well mean the end of bitcoin as well because once you take over the king, you are the king and old king becomes nothing but all of that seems very very far away.

Look at bitcoin right now, it has huge dominance and it is beyond 16k now, that is something we can't ignore, when people are seeing bitcoin something as valuable as this, why are we even worried about what could potentially happen? Obviously there are millions of people all around the world that thinks bitcoin will do great, which is why they are buying bitcoin right now, why would we imagine something bad could happen when everything is going so well right now?

[AniviaBtc]

Deflation can really make the price of bitcoin to become slow to increase because we all know that bitcoin is the answer when inflation occurs.

Also in US, when Trump losses the 2020 election, crypto holders are worried on what will happen next in the cryptocurrency industry.

Biden is not that into prioritizing bitcoin when it comes to the economy so it is really hard to predict what will happen next in the upcoming years during Biden administration. But I think if the economy of a country is stable enough then bitcoin will not have a huge increase in its price due to some other factors that might affect it.

[Bergkampsballs]

Price of bitcoin shouldn't really matter to us at certain levels, sure if it goes under 5k once again it could be dangerous, and if anything else ever passes bitcoin it could very well mean the end of bitcoin as well because once you take over the king, you are the king and old king becomes nothing but all of that seems very very far away.

Look at bitcoin right now, it has huge dominance and it is beyond 16k now, that is something we can't ignore, when people are seeing bitcoin something as valuable as this, why are we even worried about what could potentially happen? Obviously there are millions of people all around the world that thinks bitcoin will do great, which is why they are buying bitcoin right now, why would we imagine something bad could happen when everything is going so well right now?

I think that understanding the risks helps us to determine not only whether or not we should invest in Bitcoin and how much we should invest but it will also help us to develop an exit strategy if or when circumstances change in the future.  

[Bergkampsballs]

Deflation can really make the price of bitcoin to become slow to increase because we all know that bitcoin is the answer when inflation occurs.

Also in US, when Trump losses the 2020 election, crypto holders are worried on what will happen next in the cryptocurrency industry.

Biden is not that into prioritizing bitcoin when it comes to the economy so it is really hard to predict what will happen next in the upcoming years during Biden administration. But I think if the economy of a country is stable enough then bitcoin will not have a huge increase in its price due to some other factors that might affect it.

I haven't really seen deflation mentioned yet but that's a very good point.

I found a couple of articles for this as well. Hopefully it wont happen at all as it seems countries are going to try to push inflationary measures instead.

https://www.forbes.com/sites/investor/2020/06/10/will-there-be-deflation-or-inflation-in-the-post-coronavirus-world/?sh=2f3ded766f18

If it does happen, it looks like it would slow but maybe it might not be as bad for Bitcoin as you might expect.

https://www.coindesk.com/why-global-deflation-may-not-be-bad-news-for-bitcoin

[palle11]

But I think if the economy of a country is stable enough then bitcoin will not have a huge increase in its price due to some other factors that might affect it.

Bitcoin is a decentralized coin so if one countries economy is stable, other economies may not and investment will keep going. But economic stability or not is not to affect the growth of bitcoin nor Biden being declared as the winner.

Talking on the economy effect, the covid-19 proved that contrary because many countries were down in GDP but bitcoin kept increasing in price.

[o_e_l_e_o]

we can safely say that best blockchain is definitely not bitcoins by a big margin yet bitcoin is still the biggest one.

What? Which altcoin do you think has better tech, better security, better development, or better functionality than bitcoin? I can count on one hand the number of altcoins which aren't a complete waste of time and actually have some real merit to them, and still none of them are better than bitcoin. The majority of top ranking coins are either useless or outright scams. Which altcoins has the "best blockchain" in your opinion?

if anything else ever passes bitcoin it could very well mean the end of bitcoin

Using market cap as a marker for how good a coin is is pointless. I could create a token in under 30 minutes, print 100 billion of them, and then sell a single one to my friend for $5. My token now has a market cap of $500 billion, has overtaken bitcoin, and is the number 1 cryptocurrency in the world. That doesn't make it useful, good, or even not a scam.

[FlightyPouch]

This is informative what I really know was the quantum computing didn't know that there were other threats that could possibly eliminate the Bitcoin. Well it's better that we are aware of this one.

Well, we still have time before the creation of such a powerful computer. At that time, surely the technology of bitcoin and things behind it already adjusted for it not to be hacked or infiltrated like what happened in the past. For now, it is a threat but I think developers have their plan and know what to do if that time come.

[Dorodha]

Bitcoin prices did not fall when the economic situation worsened. Its price is increasing based on the demand of the market whether the whales are a threat to the market or everyone is trying to improve the country's economy. Bitcoin investment can improve the country's economy if bitcoin becomes legal. the crypto market will rise further and the economic situation will not be able to cope with the improvement of Bitcoin. Rather it will help deal with the economy and the bad situation not the threat.

[FanEagle]

Governments banning bitcoin or crypto in general is not something you should be worried about because we are in a stage where billionaires are getting involved with bitcoin. Look at all the companies that bought bitcoin just this year, and I am not talking about all the other big companies that did similar stuff in the past 10 years as well. We are at a stage where almost 1% of all bitcoins are owned by rich people right now, which means they really think there is a future in it.

I understand that governments may not want regular citizens like you and me to get rich thanks to bitcoin or take their own power or anything else that would make them weaker and us stronger, that is logical and reasonable to expect from them. However we are talking about wealthy people getting involved and they will bribe politicians to let crypto grow.

[Bergkampsballs]

we can safely say that best blockchain is definitely not bitcoins by a big margin yet bitcoin is still the biggest one.

What? Which altcoin do you think has better tech, better security, better development, or better functionality than bitcoin? I can count on one hand the number of altcoins which aren't a complete waste of time and actually have some real merit to them, and still none of them are better than bitcoin. The majority of top ranking coins are either useless or outright scams. Which altcoins has the "best blockchain" in your opinion?

if anything else ever passes bitcoin it could very well mean the end of bitcoin

Using market cap as a marker for how good a coin is is pointless. I could create a token in under 30 minutes, print 100 billion of them, and then sell a single one to my friend for $5. My token now has a market cap of $500 billion, has overtaken bitcoin, and is the number 1 cryptocurrency in the world. That doesn't make it useful, good, or even not a scam.

Hey, I'm just curious as to which altcoins you would count on this hand?

[o_e_l_e_o]

Hey, I'm just curious as to which altcoins you would count on this hand?

Monero, coins exploring Mimblewimble tech, Ethereum.

[Bergkampsballs]

Hey, I'm just curious as to which altcoins you would count on this hand?

Monero, coins exploring Mimblewimble tech, Ethereum.

Thanks, I'll have a look. You're not a fan of XRP then? I only ask because I've got somebody badgering me that they have a giveaway in December that he thinks is going to send it up and away.

[o_e_l_e_o]

You're not a fan of XRP then?

It's one of the biggest scams in crypto. It cannot be mined. Instead, the founders simply created 100 billion out of thin air and gave it to themselves. They dump a few hundred million or a billion or so on newbies whenever they want some more money for themselves. It is centralized, the founders control the blockchain, and can freeze addresses and coins as they see fit. And none of that mentions it is supposedly designed to be used by fiat banks, but you can use the Ripple Protocol without needing to use XRP, so it is completely pointless.

My advice for you would be to ignore everyone who tells you an altcoin is going "to the moon" or any other such childish nonsense. Almost everyone who is doing so is trying to make themselves richer by hyping up whatever rubbish they are stuck holding at a much lower price than they bought in for. The only coins I regularly use are Bitcoin and Monero, and both of those I use because of their technology, not because of their price.

Stick with bitcoin for the time being. A lot of people will stick solely with bitcoin forever, which is not a bad idea. If and when you do want to venture in to altcoins, choose ones with good technology and ongoing development, and not because someone is shilling their bags.

[Bergkampsballs]

You're not a fan of XRP then?

It's one of the biggest scams in crypto. It cannot be mined. Instead, the founders simply created 100 billion out of thin air and gave it to themselves. They dump a few hundred million or a billion or so on newbies whenever they want some more money for themselves. It is centralized, the founders control the blockchain, and can freeze addresses and coins as they see fit. And none of that mentions it is supposedly designed to be used by fiat banks, but you can use the Ripple Protocol without needing to use XRP, so it is completely pointless.

My advice for you would be to ignore everyone who tells you an altcoin is going "to the moon" or any other such childish nonsense. Almost everyone who is doing so is trying to make themselves richer by hyping up whatever rubbish they are stuck holding at a much lower price than they bought in for. The only coins I regularly use are Bitcoin and Monero, and both of those I use because of their technology, not because of their price.

Stick with bitcoin for the time being. A lot of people will stick solely with bitcoin forever, which is not a bad idea. If and when you do want to venture in to altcoins, choose ones with good technology and ongoing development, and not because someone is shilling their bags.

Thanks man, there was a reason I was interested to hear your opinion on it and this was it. He's been getting his info from Twitter and I know there's a lot of people pushing there own agenda on there so I think I'll stick to getting my info from forums like this instead. I've got 98% of my crypto in Bitcoin at the moment and was thinking about trying to diversify a bit but TBH I'm not too concerned about banking on Bitcoin. Bitcoin or bust it is for now then 

[jaysabi]

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.

No widespread adoption is exactly what makes it a bad currency. Along with an inability to hold a stable value (actually more important for a currency) and the fact that the things you listed as a "benefit" are actually false. Bitcoin is slower than every current electronic payment (credit card, ACH, wire transfers are accepted in seconds vs. 10-60 minutes for bitcoin), lower fees is a big nope for credit card and ACH. Not to mention that most people on these boards are interested in Bitcoin appreciating in value, not holding a stable value, so the mentality of bitcoin enthusiasts as a whole is one of investment not for use as a currency. People using bitcoin for actual commerce are the vast minority of people involved in bitcoin. Glad you find use in it as a currency. I'm not expecting that to go mainstream any time soon.

[o_e_l_e_o]

No widespread adoption is exactly what makes it a bad currency.

It makes it a young currency, not a bad one.

Bitcoin is slower than every current electronic payment (credit card, ACH, wire transfers are accepted in seconds vs. 10-60 minutes for bitcoin)

I can broadcast a bitcoin or a credit card transaction instantly. After 10-60 minutes, I can no longer reverse a bitcoin transaction, whereas I can reverse a credit card transactin for up to 180 days depending on the provider. The recipient can spend the bitcoin instantly without waiting for a confirmation if they choose, whereas it will take several days for the credit card company to pay them the fiat they are owed.

lower fees is a big nope for credit card and ACH.

Credit card transactions cost 2-3% in fees, which could be hundreds or dollars. Bitcoin transactions cost a few cents.

People using bitcoin for actual commerce are the vast minority of people involved in bitcoin. Glad you find use in it as a currency. I'm not expecting that to go mainstream any time soon.

And yet, if nobody used it as a currency then it would have zero value and nobody would be speculating on the price. Using it as a currency drives adoption, and adoption drives price increases.

[raidarksword]

The only natural threat that i see is the volatility of what makes the price dump but not in the sense it will be dropped drastically but only a little margin because people controls the price, the supply and demand in simple terms. With the continuous support from the whole crypto community, traders and investors backing up the price rally everything is good and no need to panic because as we see right now we are constantly gaining stable momentum to $16K price range.

[Negotiation]

I don't see any threat to the price of bitcoin but it is increasing the demand of the crypto market bitcoin has already pumped up a lot and its price will increase further both traders and investors are much more profitable due to rising prices. Although everything has been damaged by the epidemic the supply of bitcoin is rising and bitcoin is a great opportunity to save for the future to overcome the next crisis even if the price gains momentum more prices will surpass.

[globalpain]

For now the threat can occur because of the vaccine from Covid19,
we know the impact of the pandemic on cryptocurrencies is very big, it has been seen in the increase in the price of Bitcoin,
news that in 2021 a vaccine is ready to be distributed to the world, for cryptocurrencies of course it is still a mystery,
but This is just my speculation, because the vaccine is available everyone returns to their normal life and people readyto sell their investment.