The Halving - Good or Bad for Bitcoin?

[goldcoinminer]

I don't really understand how good or bad it for bitcoin but i am sure that for many common bitcoin users halving is very good, cause it's money for free

I think the halving has two side, first it is good.  Yes it is for Bitcoin whales to use it as tool to speculate price increase.  Good for those who bought their Bitcoin at low price.  But eventually after the halving, that  i think for the whale to at least dump their certain portion of Bitcoin resulting to decline in price which is bad for miner.  Imagine your mining reward to be 50% less and less price?  I bet that is double trouble for miner.  Might result to several miners shutting down their mining machine.

If some miners will shut down their machine, then difficulty in finding a block will now become lessen. That scenario for miners won't happen even the price won't increase much since they just give way to other miners. Since rewards will drop production will now be slow resulting for big whales to have only add a small percentage of hold coins compare to usual. In here the demand will now be presently active since less coins are now produced resulting for a price increase.

For me, my only concern is too the price increase and I know with the time bitcoins is in existence it will accordingly increase due to the demands with the new adopters coming it, the more we attract more users the more the demand will increase and if the will increase due to halving then well and good.

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[Enotche]

If some miners will shut down their machine, then difficulty in finding a block will now become lessen. That scenario for miners won't happen even the price won't increase much since they just give way to other miners. Since rewards will drop production will now be slow resulting for big whales to have only add a small percentage of hold coins compare to usual. In here the demand will now be presently active since less coins are now produced resulting for a price increase.

Yes. Miner earn on the difference between income and the cost of electricity and other related network management equipment. Increased revenue from of mining bitcoin depends on the productivity of the equipment.
Miner, use less efficient equipment, they will be forced to leave the network, when the rewards will fall. Since they will have no meaning and profit. If mining equipment can operate only on electricity costs, it does not work "

[TemplarKnightUK]

To the point of the question, on whether or not it is bad for bitcoin: all of these considerations arise as a result of the halving, but that halving is very much necessary for bitcoin to halve any value. Its value only derives from its scarcity and the guarantee of that halving. Without it, it is nothing more than binary digits and wasted electricity. Putting pressure on miners, though, is perhaps a bad thing. The next best thing would be a disinflationary supply, with constant mining output (I think Ether has this principle?), or even a constant-inflationary supply (i.e. block reward expands to ensure constant expansion of maybe ∼3/4% p.a, Friedman-style?). It's all guesswork, but I think there is cause to be bullish, and I really don't think the network is going to break in 20 days' time.

Along with the halving miners could raise the fees in order to somewhat compensate (or overcompensate, lol) for the loss of profits due to halving and possible price collapse just before or right after the halving...

I'm curious who does actually set the fees?

Sorry for the delay; my response has obviously been under incubation for a while to allow full cogency

Market price can only be manipulated by those who hold substantial sums of coins; yes, miners do, but they will less so after halving. And they'll have to dispose of them eventually. Let's wait and see.

Fees are determined by us, who send transactions. It's a "fee market", and in fact, that is why the block size has to be limited (though 7tps is extremely mediocre, and off-chain solutions destroy the very essence of BTC, but this is a discussion for another thread). We set what fee we would like to pay to the miner and they include the highest fee paying Txs in their blocks. But, if the situation becomes that you have to include high fees to transact, people just will not transact and continue to hold their coins. Miners revenue declines; they power off. Businesses go bankrupt, sometimes. Yes, they do everything in their power to prevent it and even manipulate and break the rules, but sooner or later they evaporate.

For example, Lehman Brothers...

[useless4]

I don't really understand how good or bad it for bitcoin but i am sure that for many common bitcoin users halving is very good, cause it's money for free

i doubt that it might be bad for bitcoin, bitcoin halving will surely be a good thing, i think the worst thing that might happen that people will dump the price a lot

there are many great things why halving is good, for example more people will be interested in it after halving, also the price might be pushed to the new heights

[Jmild1]

I don't really understand how good or bad it for bitcoin but i am sure that for many common bitcoin users halving is very good, cause it's money for free

I think the halving has two side, first it is good.  Yes it is for Bitcoin whales to use it as tool to speculate price increase.  Good for those who bought their Bitcoin at low price.  But eventually after the halving, that  i think for the whale to at least dump their certain portion of Bitcoin resulting to decline in price which is bad for miner.  Imagine your mining reward to be 50% less and less price?  I bet that is double trouble for miner.  Might result to several miners shutting down their mining machine.

If some miners will shut down their machine, then difficulty in finding a block will now become lessen. That scenario for miners won't happen even the price won't increase much since they just give way to other miners. Since rewards will drop production will now be slow resulting for big whales to have only add a small percentage of hold coins compare to usual. In here the demand will now be presently active since less coins are now produced resulting for a price increase.

For me, my only concern is too the price increase and I know with the time bitcoins is in existence it will accordingly increase due to the demands with the new adopters coming it, the more we attract more users the more the demand will increase and if the will increase due to halving then well and good.

Well good idea. Just want to ask how can we assure that there will be a new adopters coming. Do you base it with the price we have? And if yes, how can you assure that the price is not a manipulation made by big traders.

[chaser15]

I don't really understand how good or bad it for bitcoin but i am sure that for many common bitcoin users halving is very good, cause it's money for free

I think the halving has two side, first it is good.  Yes it is for Bitcoin whales to use it as tool to speculate price increase.  Good for those who bought their Bitcoin at low price.  But eventually after the halving, that  i think for the whale to at least dump their certain portion of Bitcoin resulting to decline in price which is bad for miner.  Imagine your mining reward to be 50% less and less price?  I bet that is double trouble for miner.  Might result to several miners shutting down their mining machine.

If some miners will shut down their machine, then difficulty in finding a block will now become lessen. That scenario for miners won't happen even the price won't increase much since they just give way to other miners. Since rewards will drop production will now be slow resulting for big whales to have only add a small percentage of hold coins compare to usual. In here the demand will now be presently active since less coins are now produced resulting for a price increase.

For me, my only concern is too the price increase and I know with the time bitcoins is in existence it will accordingly increase due to the demands with the new adopters coming it, the more we attract more users the more the demand will increase and if the will increase due to halving then well and good.

That will just become an effective one if those new adoptors will purchase coins using their money and not by doing such bitcoin earning method that pays in bitcoin. They must take part in the circulation of coins in the market in order to give a quite boost in price even at small percentage.

[eddyubachs]

I don't really understand how good or bad it for bitcoin but i am sure that for many common bitcoin users halving is very good, cause it's money for free

I think the halving has two side, first it is good.  Yes it is for Bitcoin whales to use it as tool to speculate price increase.  Good for those who bought their Bitcoin at low price.  But eventually after the halving, that  i think for the whale to at least dump their certain portion of Bitcoin resulting to decline in price which is bad for miner.  Imagine your mining reward to be 50% less and less price?  I bet that is double trouble for miner.  Might result to several miners shutting down their mining machine.

If some miners will shut down their machine, then difficulty in finding a block will now become lessen. That scenario for miners won't happen even the price won't increase much since they just give way to other miners. Since rewards will drop production will now be slow resulting for big whales to have only add a small percentage of hold coins compare to usual. In here the demand will now be presently active since less coins are now produced resulting for a price increase.

For me, my only concern is too the price increase and I know with the time bitcoins is in existence it will accordingly increase due to the demands with the new adopters coming it, the more we attract more users the more the demand will increase and if the will increase due to halving then well and good.

Well good idea. Just want to ask how can we assure that there will be a new adopters coming. Do you base it with the price we have? And if yes, how can you assure that the price is not a manipulation made by big traders.

Price will be always manipulated by big whales and there are many people who keep on saying that bitcoin will not survive in long run so that people get panic and they sell it lower price.

[egghead123]

The biggest beneficiaries will be the developers behind all these shitty ICO's

[romero121]

I don't really understand how good or bad it for bitcoin but i am sure that for many common bitcoin users halving is very good, cause it's money for free

Well described, but from my understanding nothing can be said exactly that it surely gives free money for common users. Everyone expect rise but it moves based on the way its been developed.

[groll]

As the title says, is the halving good or bad for the price of bitcoin?

The halving will decrease the supply of bitcoin, whole keeping the demand, so that would make bitcoin worth more.

But the halving will make mining profitibilty worse, meaning less miners, a higher trans. fee, and maybe causing a smaller demand.

What's your verdict?

I think bitcoin will still go up, as the fees might, let's say, double, but that's still a smaller transaction fee than through the banks...

Halving does not mean bad or good for bitcoins. What is bad for bitcoins is the insufficiency of present miners to catch up with new block to meet the present demand for bitcoins. But given there are no miners around, halving is bad news to bitcoin but good news to the users since the value will go up tremendously if the supply is decreasing and the difficulty in mining is increasing.

[boyptc]

The biggest beneficiaries will be the developers behind all these shitty ICO's

You got the point out there, they are really going to benefit the effect of halving and it will be good for them.

Well described, but from my understanding nothing can be said exactly that it surely gives free money for common users. Everyone expect rise but it moves based on the way its been developed.

Many are speculating that bitcoin halving will be a good thing for all of us. But for miners it isn't. Because the price of bitcoin will increase, as the block reward for mining will increase it's difficulty so it means the supply will be lessen so the demand will increase.

[Dux2K]

Price will be always manipulated by big whales and there are many people who keep on saying that bitcoin will not survive in long run so that people get panic and they sell it lower price.

I dont think so that btc will not survive in long term cuz all are in for that
Maybe it will be little hold up but that will be for few months

[boyptc]

Price will be always manipulated by big whales and there are many people who keep on saying that bitcoin will not survive in long run so that people get panic and they sell it lower price.

I dont think so that btc will not survive in long term cuz all are in for that
Maybe it will be little hold up but that will be for few months

Bitcoin will survive for a very long time and look at what is happening today in the economy of bitcoin. It is becoming more popular as more and more stores are accepting payment by means of bitcoin.
And once the halving happened for sure it will have a good effect for all of us.

[Enotche]

"When using traditional economic theory, the combination of price and complexity of mining bitcoin have to balance and get back on the market in the same position as it was on before Halving. Thus, if the complexity of mining remained unchanged, the price will be doubled, "(c) Thurber.

If bitcoin behaves like other commodities, its price should increase with decreasing supply. If this argument is true, then the price would have increased enough to offset the loss in mining and align.

[TemplarKnightUK]

"When using traditional economic theory, the combination of price and complexity of mining bitcoin have to balance and get back on the market in the same position as it was on before Halving. Thus, if the complexity of mining remained unchanged, the price will be doubled, "(c) Thurber.

If bitcoin behaves like other commodities, its price should increase with decreasing supply. If this argument is true, then the price would have increased enough to offset the loss in mining and align.

More that the price of Bitcoin will have to be doubled if the current hashpower is to be maintained. But again, again, it is not the only variable here. Hashpower may decrease (or realign along other altcoins, or maybe ASICs will go to scrap metal, who knows). Looking at the halving from a pragmatic perspective, it is the same as doubling the difficulty overnight but leaving the block reward unchanged. But, look at the graph from Blockchain.info of recent difficulty increases (over the past two years):



The network has coped with essentially a "quartering" (from the perspective of an individual miner's revenue with constant hashpower) and relatively rapid difficulty increases without a 51% attack, or even an increase in Tx fees, as we see from the following graph:



The period of difficulty represented above begins at about Day 1000 in the second graph.

Though this could be because the quality of mining hardware is improving and everyone is scaling up. So, my impression is: if the price stays the same, difficulty will halve (or perhaps slightly less than due to altruistic miners). If the price doubles, difficulty needn't change, and likely there will be some compensation between these two variables.

[expert4knowledge]

"When using traditional economic theory, the combination of price and complexity of mining bitcoin have to balance and get back on the market in the same position as it was on before Halving. Thus, if the complexity of mining remained unchanged, the price will be doubled, "(c) Thurber.

If bitcoin behaves like other commodities, its price should increase with decreasing supply. If this argument is true, then the price would have increased enough to offset the loss in mining and align.

I think bitcoin does not follow such traditional economic theory because of mining and its complicated philosophy.

[josecauy]

I think the halving is very Good, the profit is duplicate in one year.

[0day]

Price will be always manipulated by big whales and there are many people who keep on saying that bitcoin will not survive in long run so that people get panic and they sell it lower price.

I dont think so that btc will not survive in long term cuz all are in for that
Maybe it will be little hold up but that will be for few months

Bitcoin now is a normal currency and people are using it for their normal use as like currencies and its market cap is now much huge so it is false that bitcoin will not survive for longer.

[goldcoinminer]

Price will be always manipulated by big whales and there are many people who keep on saying that bitcoin will not survive in long run so that people get panic and they sell it lower price.

I dont think so that btc will not survive in long term cuz all are in for that
Maybe it will be little hold up but that will be for few months

Bitcoin now is a normal currency and people are using it for their normal use as like currencies and its market cap is now much huge so it is false that bitcoin will not survive for longer.

The life of bitcoin will always depend on the users, if we continue to use bitcoins we will surely see a more improve and healthy bitcoin community, with the coming halving it is expected that it will give people benefits when investing due to the price increase.

Bitcoin is a risky investment but we are lucky now since we discover it at an early stage that would give us the best opportunity to explore and earn thru investment because the price will become stable due to massive adoption in the future.

[Maslate]

Price will be always manipulated by big whales and there are many people who keep on saying that bitcoin will not survive in long run so that people get panic and they sell it lower price.

I dont think so that btc will not survive in long term cuz all are in for that
Maybe it will be little hold up but that will be for few months

Bitcoin now is a normal currency and people are using it for their normal use as like currencies and its market cap is now much huge so it is false that bitcoin will not survive for longer.

The life of bitcoin will always depend on the users, if we continue to use bitcoins we will surely see a more improve and healthy bitcoin community, with the coming halving it is expected that it will give people benefits when investing due to the price increase.

Bitcoin is a risky investment but we are lucky now since we discover it at an early stage that would give us the best opportunity to explore and earn thru investment because the price will become stable due to massive adoption in the future.

Therefore, when we are staying here in the community, we should believe that life of bitcoins in the future and one way to help the community to be popular and to help the bitcoin economy we should continue to support buy spending all the time in different online businesses.