Why is the value dropping?

[Sophia1029]

I am new to btc and just recently bought $20 worth of btc to bet sports just for fun. I am a noob but i have a value trackerwidget on my tablet and the value has been dropping the past week a lot. I am just wondering if someone can briefly explain the cause of this at the moment?
When I look at the chart it looks like it reached its peak and has been generally decreasing. Will it ever go back up?

[segvec]

There is a bunch of news surrounding bitcoin.
Conduct your own due diligence.

[Sophia1029]

There is a bunch of news surrounding bitcoin.
Conduct your own due diligence.

The reason I am asking is because I can't find out what is currently causing it, this is me "conducting my own diligence". Can someone link me to an article?

[segvec]

- mining difficulty
- btcguild being shutdown
- sheep panic selling
- whales dumping

etc, etc.

[Sophia1029]

Thanks, I guess that's what I wanted to know, I will look into those.

[kokojie]

Only one reason really, PoW mining expense

[segvec]

Only one reason really, PoW mining expense

That being one of the main reasons.
Top 5 reasons easily.

[Voidful]

I registered to come and ask the same question  I stumbled upon Bitcoin around 4 months ago and only now finding this forum!

[doof]

The reason the price is going down, is there are more sell orders than buy orders.

Now you need to ask everyone one who is selling why they are selling.  And that's your answer.

[segvec]

The reason the price is going down, is there are more sell orders than buy orders.

Now you need to ask everyone one who is selling why they are selling.  And that's your answer.

Not the main reason at all.
When sell orders are put in, coin is moving from weak hands to strong hands.

[kruhft]

Only one reason really, PoW mining expense

Well, if it gets too high, miners drop out and the difficulty decreases and things go back to normal.

[tokeweed]

like any speculative 'investment', it goes up it goes down, sideways...
it's just the way it is.

[factor280]

Just like the stock market, looks like a big over-reaction.

[Cubic Earth]

I registered to come and ask the same question  I stumbled upon Bitcoin around 4 months ago and only now finding this forum!

Welcome!  That is a great reminder:  there are literally billions of people who still know nothing of bitcoin.  Voidful:  Do you have any bitcoin... any at all?

[ranlo]

The value is dropping because people are selling their coins at a rate that is lower than what they were previously sold at. It's literally that simple.

[Nrcewker]

Enlarge the time to chart that you will find it is nothing now.

[Sophia1029]

Enlarge the time to chart that you will find it is nothing now.

Yes I see it goes up and down but when you look at the big picture over the years it went up once and now is generally going down. There is only one "rise" and "fall" on the  4 year chart.

[master sato]

perceptions change, sometimes rapidly, which is why we end up with rapid fluctuations in the price of Bitcoin

[Elwar]

Only one reason really, PoW mining expense

This. If mining costs more than bitcoins, miners actually take bitcoins out of the system to pay for their electric bills.

So if bitcoin has a market cap of $1 billion and electricity costs are $500 million, miners will actually pull $500 million worth of money out of bitcoin.

Amazing huh?

And if the electricity costs are over $1 billion...the cost of bitcoins will go negative and anyone using bitcoin will actually be paying to use it.
 


Or, more realistically, if miners are selling all of their coins there is a built in maximum inflation built into bitcoin which can easily be eaten up by the influx of new users.

[Marbit]

We're in a strong technical down trend. And while the infrastructure around and trust in BTC is growing, the fundamentals may not justify the price at present. The fact is that mining farms are still making bank selling at the current rate, and until demand begins to outweigh this sell pressure (added to by merchants and bag holders), we will continue to down trend. With bumps and valleys along the way.