RE: REASON FOR BITCOIN MASSIVE SELL OFF? Learn my personal opinion and share yours
Greetings @crypto.piotr
I believe you covered the two most important points that are happening right now in terms of bitcoin movement. I agree with you that in a few days nobody will care about the FED situation but the Kazahstan situation is very serious.
Furthermore, we should not forget that this drop surprised a lot of people forcing them to sell of some of their holdings because of overleveraged positions. I know that this topic was discussed to death in the past months but I do think this is a point worth mentioning as well.
Regarding the Bitcoin miners, I think that they will relocate and during this time the remaining miners around the world will keep the network secure. The only real issue I could see happening is a hard winter in texas which could hit some more miners that are located there. This could trigger another spiral downwards.
In the case that there is no more "bad" political events, I see Bitcoin recovering again. I dont know how fast or how far but I definetly see it happening.
Great read! :)
Thanks for sharing your view @ga38jem
I believe that miners will not need much time to relocate to another country. We've witnessed similar problem on much bigger scale once CCCP announced crack down on Bitcoin miners in China. And few weeks later this event was already just a "thing of the past".
You've also mentioned overleveraged investors. Good point.
There will be many places around the world, which will struggle with similar problems as Texas did last year. Energy prices are skyrocketing and blackouts are becoming quite common all over the world.
I see current energy crisis as a major challenge to bitcoin network. Maybe more miners will move to El Salvador, where unlimited Volcano energy is planned to be used to mine BTC.
Any thoughts on that?
Cheers, Piotr
Good point with El Savador. There might be a trend that some miners will move to El Savador, but once other countries will recognize that parts of their economy is moving to a different country they will probably make sure that they have an equal opportunity for those who want to leave.
I think this will prevent a monopoly of miners in El Savador in the long run which is a good thing because decentralization is a good for Bitcoin overall.