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RE: Why bitcoin is sliding today, and why we may be getting close to a bottom
I'm a beginner in cryptocurrencies, sorry if I write something dumb, but this is how I see It: Miners are pulling out because of whatever (taxes, regulations, etc.) now the bitcoin network has a hard challange because there are a lot of miners, if they pull out, there will be short time where the challange is still hard and not adapted to the weaker network of miners. At that time it will rise, because it's harder to get it. And when the network's challanges get weaker because of less miners, then the price will drop a bit. Please correct me if I'm wrong :)
The price is set by supply and demand. Mining difficulty follows the price, not the other way. In a scenario where a significant portion of the miners drop out of the network, the time between blocks (time to confirm a transaction) will increase. There is no direct relationship between the number of active miners and the price.
Good explanation, thank you!