Why is the price of cryptocurrency falling
Why Cryptocurrency Prices Are Falling
right ladies and gentlemen mr. Socko
here and welcome to some more Bitcoin
news and you might be wondering why
Bitcoin and pretty much all the old
coins are totally dropping right now so
it's in a big correction at the moment
and so there are several reasons for
that first and foremost if you haven't
heard yet I know I'm a couple days late
to the show
technically in making this video but if
you haven't heard yet coinbase has
introduced Bitcoin cash so we can
actually take a look at that Bitcoin
cash now on coinbase
what is wrong with that is that it came
out of nowhere and there are now huge
allegations of insider trading with
coinbase so how did that come about well
Bitcoin cash basically I think forked on
August 1st and coinbase was one of the
exchanges that did not go along with
Bitcoin cash at the time and everybody
really liked that decision because
Bitcoin cash is pretty much a tumor in
the crypto world numerous events of of
Corrections or crashes if you will have
been caused by Bitcoin cash and I think
in any case if you have to name a
product after a bigger product even
though it is a fork I believe that you
have a bad product like if you have to
name something after a better product in
order to get attention to your crappy
product then you shouldn't really exist
in the first place and if you if you
don't if you don't have the if you have
the audacity to copy a name like that
and not just come up with your own name
they could have named it basically
anything but when Bitcoin cash came
along they knew that if they named it
Bitcoin something or other after of
course it's going to get attention so
that is pretty much a red light in
itself
now coin base was supposed to release
Bitcoin cash and be tradable on January
1st 2018 however on the what I believe
it was Tuesday the 19th I believe it
showed up on coin based out of nowhere
there was no warning there was no
Twitter post
no emails that were sent out excuse me
previously that not even a 24-hour sort
of thing it just magically popped up on
the site and caused huge problems in the
few days that it was rising up to that
so we have an article here that coinbase
is halting Bitcoin cash transactions
amidst the accusations of bits of excuse
me of insider trading and this is posted
for December 20th when it was suspended
temporarily now it has been released you
can buy and sell I believe and so it's
all good now however what happened
before that is this huge huge increase
in the price just as just before
coinbase accepts it so what happened is
is a lot of people assume that some
coinbase employees spoke up about this
and that caused some a few or even just
one person to buy a ton of Bitcoin cash
and then put it up on G Dax and one big
problem is that they put it on and all
the prices so you could buy into Bitcoin
cash on coin base but you could not sell
it so that means the price was going up
and up and up and up and one point it
got to $9,000 so that means that some
people some poor guy or woman I suppose
poor person put $9,000 or bought Bitcoin
cash at $9,000 and now it is nowhere
near that so everybody that bought in at
3500 or more they just lost out they
thought that it was it was going to be
exploding but really it was just a show
and some things were pretty pretty
messed up about that so there's there's
huge accusations of that and this CEO of
coinbase is investigating it and wants
to you know fire or press charges
against any kind of employees but I
really don't think that's good enough
it's too late and coin bases reputation
has been tarnished however I'm going to
continue using coin base I don't really
have too much of a problem with coin
bases functionality however this was a
big blow to the crypto world I think it
will of course
recover but a big temporary blow so this
Bitcoin cash comes out of nowhere on
coinbase obviously people knew about it
before that and then they stopped cells
of all kinds so you can buy into Bitcoin
cash but you cannot sell it and that's
that creates a huge problem in a market
if you could only buy and not sell of
course the price is gonna rise to nine
thousand plus dollars and then when it
gets fixed and you can sell it all those
people that bought in at nine thousand
if they don't sell pretty much on the
millisecond they they lost potentially a
lot of money I mean some good news in
the crypto world charlie lee the creator
of light coin sold all of his light coin
stating that was a conflict of interest
so he got rid of all of it so nobody can
say anymore because uh on the on the
light coin reddit sometimes whatever he
makes an announcement and he says this
that or the other thing about light coin
on twitter the price goes up or goes
down and then people are furious with
Charlie Lee so Charlie leads a pretty
good guy overall I don't know him
personally obviously but for the most
part he's a pretty steady guy sticks to
his word and you know he's gotten in
trouble a few times because he says
something in advance about what's going
to happen to light coin and not
necessarily insider trading like oh the
price is gonna go up or down but he says
something about it and then the price
goes down and that kind of gets him in
trouble and so some people are thinking
well maybe all he has to do is say
something good or something bad
about litecoin just one tweet and the
price is gonna go up or down and he
could make money that way you know he
could say something good about it the
price is gonna go up he sells he says
something bad about it the price goes
down he buys so he's not in at he's not
in it he sold all of his light coin I
don't suppose we have any proof that he
sold all of his light coin but I kind of
believe him he's generally a pretty
honest guy and like I said his honesty
sometimes gets him in a little bit of
trouble on that
so that's some Bitcoin news also how
about some personal news so today I
tweeted at new egg that I had bought to
1080 tea eyes from them with Bitcoin so
what had happened was I used two
separate accounts because the particular
card that I was going to buy was a limit
one per customer I have a really
friendly neighbor so I was like you know
what I'm gonna ship one to your house
and ship when to my house and everything
will be good so I made two separate
accounts and I bought one ten atti on
one 110 atti
on the other with Bitcoin and turns out
both of my transactions were cancelled
and a new egg decided to say that I can
get a refund of Bitcoin because I
underpaid new egg however I paint the
exact price that was shown on new egg
what had happened was is the particular
car that I was going to buy and you can
look it up yourself it's the GTI
excuse me GT X 1080 TI turbo and it
comes with a free a free game and it's
destiny too and I really couldn't care
less about destiny - I have no intention
of playing it I just wanted the card
because it's only like a seven hundred
and nine dollar ten atti and it performs
just as well it might run a little bit
hotter because it's an SLI type card
with with a blower with an internal
blower so it'll run a little bit warmer
but not too big of a deal doesn't really
run particularly slower than any other
1080 TI so they're a pretty good deal so
what's the problem is is that when you
buy that with them with a debit card or
a credit card
it doesn't actually charge you that
$59.99 for that game but it sort of does
in the system but it never actually
charges your card and the reason why it
sort of does and the system is because
they have to actually tell their vendor
the creator of destiny to I don't know
if that's I don't even know who that is
honestly because I don't follow the
destiny games so that they can tell that
vendor hey we sold one of your games
here's the receipt here's you know the
purchase of that you know and so Newegg
has to do that as a business so when you
buy it with Bitcoin that's not the case
and they want the full amount but they
don't actually say that they
want the full amount really the the
total is much less then buying it with
with the with the game so they said that
I gave them insufficient funds sent them
insufficient Bitcoin so now I'm kind of
in a fiasco with them I have their
accounting team on the line and stuff
I'm sent them proof of purchase and
whatnot so I'm trying to get two gift
cards now from them so that I can buy
these individual cards now and the
reason why I don't want a refund of
Bitcoin is because of the downfall of
Bitcoin so one of the big problems with
Bitcoin is that and one of the the main
selling points of Bitcoin cash which I
still say that Bitcoin cash is a tumor
if he wants if you want a fast
cryptocurrency just use light coin or
vert Quine even etherium to some degree
but um so one of the one of the big
points of Bitcoin cash is that it has
low fees and faster transfers than
Bitcoin so for me to send approximately
seven hundred and fourteen or fifteen
dollars in Bitcoin for the the tax and
chipping and whatnot it cost me like a
thirty dollar Network fee and that's
twice so I paid about sixty dollars in
network fees just to buy these two cards
because my my Bitcoin was a little tied
up at the time and I'm actually a little
glad that I got rid of the Bitcoin in
time because now Bitcoin is down to I
think the last time I checked about
$13,000 so it's getting very very low
and so I got rid of it in time earlier
today however that sixty dollars is a
lot so now if they send that back to me
twice in those two separate transactions
that's gonna be another sixty dollars
and then if I really want to buy them
again with Bitcoin which I wouldn't do
it would be another it'd be another two
transactions another sixty dollars so I
told them they basically refused the
refund and I just want gift cards and
that's what they do in that case so I'm
waiting on that so if you're gonna go
onto Newegg and you're gonna buy with
Bitcoin really ensure
that you're buying a product that
doesn't have a free product that comes
with it so like say you buy like say in
my case you go to buy a graphics card
and it has a free $60 game for some
reason in their system it is not set up
that you're just gonna pay for that card
and it's just gonna take that price away
for some reason they want you to pay for
that card and if you did pay for that
car that one mean that you've overpaid
by about 30 or so dollars when it comes
to the network fees and the transactions
so you paid you overpay for the card if
you do that and then that would mean
that new egg has to refund you either
Bitcoin or a gift card a gift card
wouldn't be too bad but if they refunded
you Bitcoin it was it cost you like some
$30 in-network fees and that's one of
the main downfalls of Bitcoin so really
bitcoin is not used as a daily
transaction not uses a daily money sort
of thing it's really merely a store of
wealth at the moment and I do fear in
the future that Bitcoin will be
overtaken if it does not add lightning
networks or everybody adds seg wit or
something like that I know there are
downfalls to adding seg wit and
lightning networks and so it does kill
some of the some of the decentralization
when you add seg wit for faster lower
fee transactions because then that
actually has to make the nodes bigger
which eventually will only be able to be
on big servers because if you add
segwayed it makes the it makes the
blocks a lot bigger and eventually only
servers would be able to really keep up
with a node and then that ruins the
whole decentralization that ruins the
fact that you can run a node a Bitcoin
node on your computer and verify
transactions all around the world and
help it be a part of what makes Bitcoin
Bitcoin so I understand there are many
trade offs with Bitcoin left and right
you know if you go one way it's of
course it's gonna you're gonna sacrifice
one thing if you go the other way you're
gonna sacrifice the other thing so it's
really a trade-off but at the moment I
just don't feel that the Bitcoin I think
it's gonna last a little while I think
you know like once Wall Street kind of
gets into it and some major some major
extreme even even more so major
exchanges get into it of course it's
gonna go a bit bigger where it's gonna
go I don't really know but I think
sooner or later Bitcoin will die maybe
not die completely but it's going to
it's gonna get rocked sooner or later it
kind of is already happening in the
sense that litecoin is just so much
easier to use as a transaction and I
don't mean just like coin of course you
could use you can use mono coin or Verte
Colline or - whatever you want but right
now bitcoin is completely unusable I
read a story on reddit some guy went
into a bar and had 20 bucks worth of
drinks and he wanted to pay in Bitcoin
so yes DSD the bartender he says can I
pay in Bitcoin he says yeah sure why not
and what he goes to pay in Bitcoin it
turns out to be 50 dollars so there's 30
dollars and fees for a twenty dollar
drinking night and so when he said well
just give me that back I'll just pay
with a credit card you can't really do
that and so it turned into a couple hour
ordeal for him to get his point back or
for him to pay in the coin because he
says that you know when he goes to pay
in the coin it's not gonna verify for
two hours and so the bartender is like
well we don't have that time you know
it's late we don't have two hours to sit
around and verify a transaction whereas
if he would've did that with litecoin
the fee would be maybe a couple dollars
pretty low compared comparatively
and it would be verified much faster as
well so there are some downfalls to
Bitcoin so I'm kind of actually glad
that I got rid of my Bitcoin so I'm
actually going to be mining a lot more
I'm gonna start mining a little bit more
of course I'm gonna be I'm gonna be
trading as well I'm gonna be trading
back and forth because it's a great way
to make money it really is but if you
want to use Bitcoin it's a lot harder
than then it dish Elyse ounds that the
fees are outrageous
unbelievable so and that's especially
hard for
particularly hard for for example in
Venezuela the government's in in a bit
of turmoil right now there's huge
inflation and so their money is worth
virtually nothing
there's too much inflation so they're
all going to Bitcoin in various altcoins
so if they had Bitcoin in Venezuela and
then you want to buy your groceries with
it and you have to pay $30 in
transaction fees 30 American dollars in
terms of Venezuelan dollars is huge so
it's simply unusable and when they say
that it's unusable it's true and Bitcoin
bitcoin cash hills will tell you that it
that bitcoin is is unusable and they're
not wrong when they say that so you know
I don't really like Bitcoin cash because
I think it's just sort of a tumor it's
caused way too many crashes and dips
it's caused way too much drama Roger ver
is is really just a big tool he's a big
human tool and in everybody nobody
really likes Roger ver I can't say that
I've ever met a person that likes Roger
ver but I'm sure his million dollar bank
account doesn't care so in the same way
that you know if you don't like a
celebrity well he just flashes this
forty million dollar bank account and
says this is how much I care with my
forty million dollars like I don't care
what your opinion is about me because
I'm a millionaire so what does it matter
so hopefully you guys take that into
consideration and maybe start trading
like going a little bit more or Verte
Colline or even mona coin you know the
course there's - and aetherium is okay
too but even the etherium fees are
starting to get a little bit high but i
hope you guys enjoyed this video I
wanted to make it just a short little
news video on a simple and just wanted
to tell you guys why everything's kind
of crashing is that there's a lot of
uncertainty right now and with Bitcoin
cash going on to coin base which is
easily the biggest exchange it's huge
compared to everybody else there is tons
there's tens of thousands of new signups
every day from just regular old people's
wanting to get into cryptocurrency and
there's nothing wrong with
but the problem is is that it popped up
out of nowhere it was scheduled for
January first and so that means that
everybody is preparing for January 1st
so there might be like a I got a few
extra days before I can buy some Bitcoin
cash before it goes onto G Dax before I
can you know make some profit with that
but then it just appears poof out of
nowhere and with no warning no tweet no
email nothing and then they shut down
selling so that it just jacks up the
price so there was huge insider trading
there has to be it's it's it's somewhere
there was insider trading one way or
another and so that is definitely not
good so then when everybody sees in and
just imagine if you're really new to the
Bitcoin cryptocurrency world and you see
Bitcoin cash pop up let's actually look
at it on G Dax I wonder if it's normal
looking right now that GD X has had a
lot of odd issues here oops yeah right
now it's a little messed up looking but
so when it first came out it was just
rising it was huge what if we can go
just an hour back or six hours here and
it was huge look how far look how high
it got nine thousand five hundred and
twenty-four dollars so that means
somebody somewhere paid nine thousand
five hundred twenty four dollars for
Bitcoin cash something that's not worth
not even really worth twenty four
hundred dollars if you ask me it's not
even worth that I'd say maybe four
hundred dollars per coin it should be
worth five hundred so it's worth nothing
nowhere near nine thousand ninety five
hundred and so that is where coinbase
this is exactly why coin base is in a
little bit of hot water right now and
everybody seen this going up and at
first it was really really low so when
it first was put on 2g tax it was at
three thousand dollars so when people
see this bch they think there's a great
deal they think maybe bitcoin maybe they
think that was Bitcoin and they see
Bitcoin at three thousand dollars when
it first came out now if Bitcoin fell
down to three thousand dollars there
would be a buying frenzy and it would
just go right back up it wouldn't be
able to go down any lower
because it would be bought up well
before it reached 3000 so a ton of
newbies if you will bought into Bitcoin
cash thinking that it may have been
Bitcoin thinking they maybe could make a
quick buck and they bought it all the
way up because it came out of nowhere
there was no warning so that is the
reason so if you're wondering why all
the crypto currencies are way way way
down look twenty five percent twenty two
percent twenty five twenty so that's the
reason why I hope you guys enjoyed this
video stay tuned for more action and I
hope you guys enjoyed it see you guys
next time
