Story - 40% Bitcoin Price Corrections 0:54
Shout out to Twitter user Igor Ybema for reminding me of this tweet that I posted on the 15th of September.
If we click on the image to zoom in we see the Bitcoin price running up 1826 to $5,000.
Then within a couple of weeks it drops from $5,000 to $3,000.
That was a 40% correction.
For the benefit of the podcast listeners, I also drew some arrows on the chart which pointed to the 40% drop with some text saying β1 year from now, thisβ¦will look like this.β and then thereβs another arrow pointing to this relatively small price correction from a couple of months before.
My intention was to give myself and everyone else some perspective.
And low and behold, it didnβt take 1 year, it took 3 months because when we switch to the Bitcoin chart of todayβ¦
https://www.coinigy.com/main/markets/BITF/BTC/USD
We see a very similar pattern except at different price levels.
This time we ran up from 5400 to 20,000 and then crashed 45% down to $11,000.
And for those of you watching the video version, this white circle is the previous price crash that I featured in that tweet, it doesnβt even register as significantly.
If this pattern were to continue, then one day we would have a run up to $1m and then a price correction to $550,000.
Hypothetically thatβs true but realistically I donβt think that will happen because by the time we reach a $1m Bitcoin, weβll have a lot more liquidity which will reduce volatility.
In the meantime though, we may get some interim booms and busts that follow this pattern that make the recent crash look equally insignificant.
Story - Schnorr Signatures, The Next Big Upgrade The Bitcoin Core Code 4:32
https://medium.com/@SDWouters/why-schnorr-signatures-will-help-solve-2-of-bitcoins-biggest-problems-today-9b7718e7861c
This comes from Mr Sam Wouters Medium blog. This guy is a speaker and Bitcoin Consultant.
As we all probably know by now there are 2 distinct camps in the Bitcoin community that have opposite ideas about how to increase the capacity of Bitcoin so it can process more transactions.
The Bitcoin Cash community favor an approach that requires more computing resources but is simpler, while the Bitcoin community favor a creative approach where new techniques are invented to achieve more and more with the same resources.
When the Bitcoin Cash community criticise Segwit, the main objection is that Segwit doesnβt improve scaling.
That is true because Segwit was never meant to be a scaling solution.
It doesnβt increase capacity slightly but thatβs not itβs primarily purpose.
Activating Segwit was a step of preparation to lay the foundations for many other technologies to build on. Now that we have Segwit, the road for those additional technologies is clear.
One of those technologies is something called Schnorr signatures.
As far as I understand it, Segwit is a prerequisite to use Schnorr Signatures.
That means the code cannot be easily integrated into Bitcoin Cash in its current form.
In a nutshell Schnorr Signatures as the name suggest, is a new way of handling how transactions are signed so that the signatures use up less storage space, and thus allow more transactions to fit inside a block.
And to put that into perspective, we are looking at a 25% reduction in storage and bandwidth.
This is accomplished basically by having all transactions just have 1 single signature, no matter how many addresses are involved.
[see Todayβs Signatures Image and Schnorr Signatures Image]
But thatβs not all, says Sam.
Another big benefit of this increased efficiency from Schnorr signatures is a reduction in the effect of spam transactions.
If we scroll back up to those diagrams, you can see that if I wanted to spam the Bitcoin network, I could intentionally send dozens of transactions and make sure they involved dozens or even hundreds of different addresses.
The size of those transactions would mean the block space would get full without requiring a huge number of transactions.
With schnorr signatures it greatly levels the playing field since those spam transactions would be on a level with legitimate transactions, each having to pay for only as much space as a single signature requires.
As Sam points out here, the signature is often the part of the transaction that takes up the most space in a block.
Schnorr signatures donβt prevent spam, they would just make them less disruptive to the regular users.
While this all sounds very exciting, the major thing holding it back is the actual adoption of Segwit.
Segwit was a backwards compatible soft fork, meaning Bitcoin can flow in and out of Segwit and non-Segwit addresses freely.
And as we can see from Segwit Party, still only around 10% of all Bitcoin transactions are using Segwit addresses.
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Excellent video. Thanks for explaining in a way I can understand.
Thanks for sharing this,
we are witnessing the birth of a new currency, exciting times!
It will be interesting to see what happens in the future!
BTC had open doord to many other useful coins. Check out my take on a new XAR (Xarcade) coin for the gaming platform. Developer and gamer both benefit. DSO or discounted sale offer happening in about 5 hours at https://xarcade.io
https://steemit.com/xar/@yomaicoin/xarcade-xar-blockchain-for-gamers-and-developers
Thank you for your post. You have been voted up.
Bitcoin is like a tree whose fruits fall sometimes and doesn't look good but at other times it has so many tasty fruits on it that everyone run behind it ..
I will just say hold tight on the fruits they can turn out really tasty ..
There is still 6 Billion people chasing 21 Million BTC. Eventually, we have $1.0M BTC.
That number is less because there is an estimation of around 20% of all btc being lost forever + in our lifetime, we will not witness the last coin mined. I think the number we will be chasing the next decade might be somewhere at around 14 million, which of course gives it much more value.
Good Analogy @himu1111! Investor faith is half the game here. These currencies will continue to grow and have value as long as the community that supports them remains confident.
This is true, but the value of the US dollar will probably plunge after the stock market corrects itself, leaving the value of the dollar like that of the zimbabwe $200,000,000.00 Bank note.
It will be interesting to see how the continued issue of scaling will be addressed in the cryptocurency world. It is going to present continual challenges to developers as the more nations join the economy.
thank you
Follow me @harunbadilli
Hi ,
Nice work sir
Have a feeling when 2018 tickets over Bitcoins shooting towards 25k!
Price will moonshot on January 3rd after everyone has gotten themselves straight with the tax man.
Interesting Medium article, thanks for bringing it up to our attention.
Making spam less disruptive is not what I understood the Schnorr signatures to necessarilyβ affect as a result, but rather to make those attacks more expensive which, of course, could eventually mean less of it.
Sam Wouters wrote:
Enjoyed the read. Thank you!
Fantastic post brotha-man. Next time make it a little more relevant ;-) lol jk man this was ON POINT!
"Bitcon now down over 40% from its peak a little over a week ago. Sell it quick, if you can..."
Where the fuck did you learn to trade?
I saw a few episodes of your cryptoverse show on youtube... pretty cool , nice job
Bitcoin price crashes, it will rise again.
I have feeling that first week of 2018 and Bitcoin going to 24k!!!!!!!! Better make those alt gains while you can!~ :0
I worry about people trying to establish patterns without the vast amount of historical data available like there is with the stock market. What I find interesting is that when bitcoin goes down all the other coins seem to follow, you would think at least with the higher market cap coins they would increase as bitcoin decreased. Perhaps they will once adoption becomes more mainstream.
We are in an economic boom and 2018 is going to be even better.
Excellent video Chris. I am fairly new to cryto my son got me into it and I am learning more by the day. The recent crash had me a bit concerned but videos like yours help keep me in the loop about what's going on in the crypto space. Keep up the great work.
i don't know what the price will be, but it keeps being more difficult to explain to people why btc fees become extremely high and transactons slow. People out there will not use it if this issue is not properly addressed. Will it be a store of value forever? I have some fears...
This is normal bro
Now it's controlled by Wall Street and I expect it will play between $ 6,000 and $ 20,000 in the coming months. Do you have information on this?
Ripple doesnt work as intended at this price level. They will issue several more billion tokens soon to collapse price.
Agreed bitcoin has become a rich mans game expect lots of short squeezing and scaring of casual investors, this space is not for weak hands!
Good one. How much money do you think needs to go in for us to see a million dollar bitcoin
Very interesting @marketingmonk! DO you realistically see a 1M btc anytime in the future? I think that the massive unsolved problems btc is facing now, will end up losing people's trust in the currency and crashing it down baddly... what are your thoughts about it? Greetings form Spain mate! :)
There's still a lot of trust and money in Btc, so I do think It will eventually scale that high. Remember when China and a bunch of other countries pulled out of the cryptomarket? Btc went down 40% and it immediately bounced back up after awhile. Everytime people sell their btc, there will always be people like myself that buy the dip.
hahahah may be you are right... but at the moment is just a speculative investment and not a medium of exchange and digital cash it ment to be... and i am not seeing any sollution anytime soon?
Early January bitcoin should bounce back to previous high.
SegWit, Schnorr, Rootstock, Lightning. What a time to be in BTC. Which alts will still seem useful in 2019?
This 40% crash in price would definitely make a lot of people panic.
That is how I think money moves from the impatient to patient people in crypto market. People shouldn't panic, basically anybody coming into crypto market can forget the money they put in here, it like a fixed deposit. If you panic sell then you will burn money.
A lot of people as a result sold and might have end up making loses. The pull back was a great buying oppurtunity though.
So approximately when can I expect for Bitcoin take off, it is floating around $15000 for a while now. Just to fasten my seat belts before take off, can anyone predict this or atleast speculate based on justification.
I donβt think any prediction would be particularly useful or accurate. Just watch the price and wait for it to begin to climb. You may miss out on the very beginning of the run, but you also protect yourself.
Does anybody know when they are planning to adopt schnorr?
Nice post! Now lets all work hard and save those btc as fast as possible before price hits that million. I believe over time bitcoin will be more like a collectors item because the amount is limited and transactioncosts to expensive for daily use.
good read, i see it going back and above real fast real soon, with bitcoin miners getting harder and harder to acquire the coin will go up. and heck who cares if alls u pay for the coins is the electric expense
Hi @marketingmonk, nice work sir
Hmm, Bitcoin is having too many hard forks this year. First was Bitcoincash (BCH), then Bitcoingold (BTG) and now Segwit 2X. I dunno, how many more hard forks are coming in 2018...
Subscribed, good summary!
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A very useful post.
Very important post amazingly written :)
nice post dear @marketingmonk
I love bitcoin
love bitcoin, hate its fees...
I beliveve that BTC will growth up to 100k$
You are right but after this crash, I expect bitcoin to climb again!
well writing
I think you're right
Hy @marketingm
Thank you for your information friend steemi.semoga you post again karna i will wait for news frommu selanjut @
Hay que estar muy pendiente sobre el Bitcoin en toda su trayectoria y seguir lo que acontece despuΓ©s de este accidente, muchas gracias por compartir este post que estΓ‘ muy explicito y muy interesante
Very well written! It was a healthy correction, nothing can keep going up at the way Bitcoin was going up, a healthy correction is always good as it gives stronger long-term continuity as compared to increasing so quick and crashing and never going up. Bitcoin could be well over 100k in the next 3 to 4 years in my opinion. A more steady increase would be better as compared to short bursts of exponential increase.
Very good video
interesting :)
Great post! Given the increasing adoption and the increased participation of other types of investors, volatility should come down in the long run to minimize these crashes.
Oops!
You're title is quite scary ^_^.