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Title: Why do most people think that the price will rise because of the block halving? Post by: dothebeats on January 17, 2015, 08:32:21 PM I've been reading posts recently and I've seen many members saying that the price WILL increase because of the block halving. I understand the basics of supply and demand but I cannot determine why will it push the price upwards in bitcoin's case? As more and more coins are being minted, the higher the difficulty will be, and the more miners will quit on mining because it seems to unprofitable. However, that still doesn't help determine the price of bitcoin.
Can anyone help me understand this block halving-price relationship? Title: Re: Why do most people think that the price will rise because of the block halving? Post by: Possum577 on January 18, 2015, 06:41:27 PM Halving reduces the current growth rate of supply. The fact that it becomes more expensive to mine reduces growth rate of supply. If demand stays the same the reduction in growth of supply will eventually not be able to keep up with demand, thus forcing buyers to bid up the price.
It'll be interesting to see how it plays out. Title: Re: Why do most people think that the price will rise because of the block halving? Post by: redsn0w on January 18, 2015, 06:44:58 PM I've been reading posts recently and I've seen many members saying that the price WILL increase because of the block halving. I understand the basics of supply and demand but I cannot determine why will it push the price upwards in bitcoin's case? As more and more coins are being minted, the higher the difficulty will be, and the more miners will quit on mining because it seems to unprofitable. However, that still doesn't help determine the price of bitcoin. Can anyone help me understand this block halving-price relationship? One of the post was mine :D , because less btc "mined" more the value will rise. We have seen cex.io closed because the price dropped too much , now wait 1 second and think about the question of the halving | 25 BTC >> 12.5 BTC | I think the price will (surely) rise little , if it will not happen I think most farm will stop to mining bitcoin (and obviously the home mining will stop for ever). Halving reduces the current growth rate of supply. The fact that it becomes more expensive to mine reduces growth rate of supply. If demand stays the same the reduction in growth of supply will eventually not be able to keep up with demand, thus forcing buyers to bid up the price. It'll be interesting to see how it plays out. Yeas I agree with you. Title: Re: Why do most people think that the price will rise because of the block halving? Post by: Coinshot on January 18, 2015, 08:48:27 PM Less new coins = less coins to be sold each day.
I do not think it will have much effect. It will ease the selling pressure by some amount, but market already anticipates that and moves accordingly in advance. Title: Re: Why do most people think that the price will rise because of the block halving? Post by: Dread Pirate Roberts on January 18, 2015, 09:11:08 PM they come to cryptocurrency to believe with bitcoin . i think bitcoin will be always and always amazing
yeah Title: Re: Why do most people think that the price will rise because of the block halving? Post by: legendster on January 18, 2015, 09:52:03 PM I've been reading posts recently and I've seen many members saying that the price WILL increase because of the block halving. I understand the basics of supply and demand but I cannot determine why will it push the price upwards in bitcoin's case? As more and more coins are being minted, the higher the difficulty will be, and the more miners will quit on mining because it seems to unprofitable. However, that still doesn't help determine the price of bitcoin. Can anyone help me understand this block halving-price relationship? Answered a similar question here : https://bitcointalk.org/index.php?topic=923906.0 Its a lengthy response so only read if you got time. Title: Re: Why do most people think that the price will rise because of the block halving? Post by: Amph on January 18, 2015, 10:00:30 PM block halving mean less dumping from big farm, it simple
Title: Re: Why do most people think that the price will rise because of the block halving? Post by: countryfree on January 18, 2015, 10:52:16 PM To sum it up, about 4,000 new BTC are created each day, if that goes down to 2,000 a day, it seems logical that the price is going to rise.
Title: Re: Why do most people think that the price will rise because of the block halving? Post by: legendster on January 18, 2015, 10:56:14 PM To sum it up, about 4,000 new BTC are created each day, if that goes down to 2,000 a day, it seems logical that the price is going to rise. Provided the premined coins from the last blocks dont get dumped due to decrease in profitability. Title: Re: Why do most people think that the price will rise because of the block halving? Post by: username18333 on January 20, 2015, 07:52:44 AM . . . (Red colorization mine.)Nothing should worry you mate , that's how it is the price is basically based on Markets manipulations (exchanges websites) but that dosen't affect a lot of the price , also on Supply & demand . what you need to know is that the next halving block reward is going to happen in 2016 Q4 or something which means it will give 12.5 BTC instead of 25 BTC so ... Less BTC + demand => more value . I can't tell how it's gonna be in the next months tho . if you see it 180$ or lower just take your cash and start buying ;) Code: ( ∀𝑥 Supply-of(𝑥, Bitcoin) ) ⇒ ( 𝑥 + (25 ÷ 10)(2 ⋅ 365 ⋅ 24 ⋅ 60) < 𝑥 ) Title: Re: Why do most people think that the price will rise because of the block halving? Post by: odolvlobo on January 20, 2015, 08:42:14 AM When the demand exceeds the supply, the price rises. If the supply of new coins is cut, then the supply will rise more slowly, making it easier for the demand to exceed the supply (assuming that the demand is rising). Because the supply of new coins is such a small part of the total supply, the effect of the halving is not very significant.
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