Bitcoin price will be deflated!!! by block halving!!!!!

[aakashsangwan]

I found this article and it is so much convincing, check it out

http://insidebitcoins.com/news/the-bitcoin-halving-deflating-the-hype/35014

[chennan]

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

[aakashsangwan]

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

Yes supply will never be short as bitcoins will always be mined and the bitcoins will always increase in number.
To increase their prices we should use them in our daily lives and not just hodl them, by hodling bitcoins we will never se their prices sky rocketed.

[BitcoinNewsMagazine]

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

[silverleafy]

It would be odd if the price would drop considerably or stay about the same some time after the halving (say... 10 months afterwards). I think that the article is flawed in saying that the expected rise in price is because of reduction in the circulating bitcoin. That is wrong. Right now, there is a production of bitcoin, some part of which needs to be sold off to pay for mining cost (electricity bills cant really be paid in bitcoin). They have to sell, and that sale pressure holds the price down somewhat. Once the production of bitcoin goes down, that sale pressure will be less, because they'll have only half the available bitcoin to sell for the cost of mining. Those producing bitcoin will have to sell at about double the price if they want the same profit (assuming the cost of mining doesn't really go up). The only way is up after the halving. Maybe not immediately, but I'm pretty sure the price will double (from what the price will be at about the halving), in about a year after the halving.

[chennan]

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

Yes supply will never be short as bitcoins will always be mined and the bitcoins will always increase in number.
To increase their prices we should use them in our daily lives and not just hodl them, by hodling bitcoins we will never se their prices sky rocketed.

I see your point, but there are actually other sides of the argument that makes sense too.  Take for example, if some wealthy person took all the money out from their banks (lets say 1 million $) and stored it into a safe for safe keeping, this wouldn't necessarily mean that the dollar would lose it's value because someone with a lot of money hoarded away their money.

It's a very complicated issue, with multiple theories of what could or couldn't be right; but in actuality there is no set scheme in economics that if "A" happens, this is going to cause "B" to happen... this regards to bitcoin and bitcoin prices as well... It will definitely be interesting though to see how this all plays out in the long run though.

[aakashsangwan]

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

Yes supply will never be short as bitcoins will always be mined and the bitcoins will always increase in number.
To increase their prices we should use them in our daily lives and not just hodl them, by hodling bitcoins we will never se their prices sky rocketed.

I see your point, but there are actually other sides of the argument that makes sense too.  Take for example, if some wealthy person took all the money out from their banks (lets say 1 million $) and stored it into a safe for safe keeping, this wouldn't necessarily mean that the dollar would lose it's value because someone with a lot of money hoarded away their money.

It's a very complicated issue, with multiple theories of what could or couldn't be right; but in actuality there is no set scheme in economics that if "A" happens, this is going to cause "B" to happen... this regards to bitcoin and bitcoin prices as well... It will definitely be interesting though to see how this all plays out in the long run though.

I see your point. But as in your example $ is the most widely used currency, so everyone is using it so it has value and a person holding it will not matter that much.
But Bitcoin is child as compared to $ and it's user base is also very small.

[Amph]

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

besides on the current demand, it will increase at 100%, just not skyrocket

but it won't remain at the same exact price as it is right now, this is simple math, less dumping = more value unless someone think that miners, right now, are not dumping at all...

[1Referee]

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

besides on the current demand, it will increase at 100%, just not skyrocket

but it won't remain at the same exact prie as it is right now, this is simple math, less dumping = more value unless someone think that miners, right now, are not dumping at all...

Seeing the price get a 100% increase from today to Juli 2016 isn't that unrealistic. Less minted Bitcoins will do the demand incredibly good. The only question is for how long? I hope we won't fall back to the $250-$299's after the halving as that would be extremely sad. Dumping the price to the ground takes less than a day, but regaining everything cost plenty of months as we've seen.

[deisik]

It would be odd if the price would drop considerably or stay about the same some time after the halving (say... 10 months afterwards). I think that the article is flawed in saying that the expected rise in price is because of reduction in the circulating bitcoin. That is wrong. Right now, there is a production of bitcoin, some part of which needs to be sold off to pay for mining cost (electricity bills cant really be paid in bitcoin). They have to sell, and that sale pressure holds the price down somewhat. Once the production of bitcoin goes down, that sale pressure will be less, because they'll have only half the available bitcoin to sell for the cost of mining. Those producing bitcoin will have to sell at about double the price if they want the same profit (assuming the cost of mining doesn't really go up). The only way is up after the halving. Maybe not immediately, but I'm pretty sure the price will double (from what the price will be at about the halving), in about a year after the halving.

They will have to sell. Since their earnings will be twice as less (without any economic reason behind) while they still have to pay the same bills, they will have to sell more. Most likely, much more, thereby emptying their stashes. I don't see how the price could double in these circumstances...

So, I'm afraid, the sell pressure may actually increase

[medUSA]

One of the assumptions of the view that price will double after the block halving is miners are currently selling ALL of their mined coins. If they do sell all of their coins now, they will have less coins to sell. Hence selling pressure will ease and price could go up if demand remains the same.

What if miners aren't selling all their mined coins now? If they are only converting just enough coins to cover their fiat running costs, then they will convert exactly the same amount of coins to fiat because running costs will not suddenly jump after halving. So, neutral effect on price.

Who has inside information on what miners are doing now? Are they selling everything?

[deisik]

One of the assumptions of the view that price will double after the block halving is miners are currently selling ALL of their mined coins. If they do sell all of their coins now, they will have less coins to sell. Hence selling pressure will ease and price could go up if demand remains the same.

What if miners aren't selling all their mined coins now? If they are only converting just enough coins to cover their fiat running costs, then they will convert exactly the same amount of coins to fiat because running costs will not suddenly jump after halving. So, neutral effect on price.

Who has inside information on what miners are doing now? Are they selling everything?

They can't be selling everything, you don't need insider information to understand this. Miners are not aliens, they are just like you and me. Do you have some bitcoins in your wallet? If you don't, then I do...

[deisik]

What if miners aren't selling all their mined coins now? If they are only converting just enough coins to cover their fiat running costs, then they will convert exactly the same amount of coins to fiat because running costs will not suddenly jump after halving. So, neutral effect on price

Further, you don't take into account that halving means that the miners' revenue will also be halved. But revenue is not profit, so, after the halving, they may actually begin suffering losses...

What will they do, and what will they do even before what you think they will do?

[ralle14]

imo the price will increase becuase less coins will get produced and have high demand for btc in the future
maybe it will increase but not skyrocket that fast

[tokeweed]

I found this article and it is so much convincing, check it out

http://insidebitcoins.com/news/the-bitcoin-halving-deflating-the-hype/35014

OK. Now, how can you make a profitable trade having that info?

[Mickeyb]

In all honesty, nobody knows what a hell will happen! Maybe a halving price increase is already calculated in today's price, we don't know this. Also, maybe it will come to a price decrease as it won't be as profitable for miners to mine as before halving.

Look at the Litecoin halving this year, nothing happened. We will find out this in June-July of the next year will the same thing happen to Bitcoin.

[deisik]

I found this article and it is so much convincing, check it out

http://insidebitcoins.com/news/the-bitcoin-halving-deflating-the-hype/35014

OK. Now, how can you make a profitable trade having that info?

It may turn out that many peeps will be quite happy just to jump the ship in time. But you can always try to short if you are that type of a person. But beware, in the case of total collapse exchanges may start to fall like dominoes...

[aakashsangwan]

I found this article and it is so much convincing, check it out

http://insidebitcoins.com/news/the-bitcoin-halving-deflating-the-hype/35014

OK. Now, how can you make a profitable trade having that info?

If it had to do something with trading then it would have been in the trading section. Don't you have that info?

[Febo]

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

Yes we do. Or price will raise or half miners will close their farms. Or electricity price will halve. Or, ...

Or a bit of everything listed above.

[aakashsangwan]

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

Yes we do. Or price will raise or half miners will close their farms. Or electricity price will halve. Or, ...

Or a bit of everything listed above.

Nice post. +1
But electricity prices will never go down just merely for Bitcoin miners. And miners closing their mining rigs and giving up Bitcoin mining is also close to truth possibility.