The word "Bitcoin halving"

[ahmedjamal1998]

Hi guys.


The thing is every now and then in several topics (specially in economics section ) I hear the word bitcoin halving??

What does that word mean???  I really don't get it.


I would be grateful if anybody explains what is meant by it.

Thanks

[subwoofer12]

You don't have Google in Saudi Arabia?
http://bfy.tw/5Nab

The reward for miners solving a block is halved.

[subwoofer12]

An article:
http://mining.ghash.io/what-is-block-reward/

[helloeverybody]

Yes the block reward for mining is halving which means instead of the 25 bitcoins rewarded for every block solved it will be lowered by half down to 12.5. So in essence the supply of bitcoins is halved . So in theory most people are expecting some sort of price rise due to a decreased supply of coin.

[ahmedjamal1998]

You don't have Google in Saudi Arabia?
http://bfy.tw/5Nab

The reward for miners solving a block is halved.

Thanks for the link and I'm from Egypt by the way 

An article:
http://mining.ghash.io/what-is-block-reward/

Yes the block reward for mining is halving which means instead of the 25 bitcoins rewarded for every block solved it will be lowered by half down to 12.5. So in essence the supply of bitcoins is halved . So in theory most people are expecting some sort of price rise due to a decreased supply of coin.

Thanks guys.  I understood now but miners must be upset for.that right ?

[subwoofer12]

in essence the supply of bitcoins is halved . So in theory most people are expecting some sort of price rise due to a decreased supply of coin.

That's completely fucking wrong..

Not at all.

[Jasad]

in essence the supply of bitcoins is halved . So in theory most people are expecting some sort of price rise due to a decreased supply of coin.

That's completely fucking wrong..

Not at all.

its simply to explain to newbie like that,and if that completly wrong,then what should we used for explain what bitcoin block halving is?
if you said that was wrong,then you should give us a right answer.

[subwoofer12]

in essence the supply of bitcoins is halved . So in theory most people are expecting some sort of price rise due to a decreased supply of coin.

That's completely fucking wrong..

Not at all.

its simply to explain to newbie like that,and if that completly wrong,then what should we used for explain what bitcoin block halving is?
if you said that was wrong,then you should give us a right answer.

The only part he got correct was

Yes the block reward for mining is halving which means instead of the 25 bitcoins rewarded for every block solved it will be lowered by half down to 12.5

He's making it sound like the total # of BTC goes from 21 million to 10.5 million, which is absolutely not true. The only thing that will change is the block reward.
The second part he got wrong is the price of bitcoin rising, in 2012 when halving occurred, it had no noticeable impact on the price per coin

Don't spread false information. He shouldn't have even replied if he didn't know the correct answer.

[GailSan]

Some say it will make a big difference to the price (ie higher) but I'm really not convinced. A friend of mine who works in various parts of China tells me the electricity cost is like 5% of what we in the west pay so it seems to me it will make little difference to the Chinese miners. Will make a big difference to mining companies in the west though, if there are any left?

[ahmedjamal1998]

price rise due to a decreased supply of coin.

I don't get what's meant by this line ? Supply of the coin?

[Red-Apple]

price rise due to a decreased supply of coin.

I don't get what's meant by this line ? Supply of the coin?

it is simple economics term, supply and demand here is an article from wikipedia
https://en.wikipedia.org/wiki/Supply_and_demand

in short i can say it is like this:
when they block rewards halves there will be less coins created each day and you can assume that there will be less coins being sold each day, hence less supply and if the demand stays the same or even gets bigger that will lead to price rise.

although there is a lot of argument about this , i am just saying the theory here don't shoot the messenger

[subwoofer12]

Some say it will make a big difference to the price (ie higher) but I'm really not convinced. A friend of mine who works in various parts of China tells me the electricity cost is like 5% of what we in the west pay so it seems to me it will make little difference to the Chinese miners. Will make a big difference to mining companies in the west though, if there are any left?

I don't think it will make a difference for anyone. Noobs get confused into thinking that miners only get to keep the block reward, the block reward for each individual miner is extremely small by the time it gets divided up by the entire pool. They don't realize that every coin they mine they get to keep, I would say the majority of miners are mining at cost or just slightly under. Mining in itself is not very profitable, miners are just doing it based on speculation, they hold BTC for a significant time and sell during price spikes  

[subwoofer12]

when they block rewards halves there will be less coins created each day

You're basing this off the assumption that many will quit mining after the next halving

Historically, this has not been proven to be true.

[kwaasteniet]

when they block rewards halves there will be less coins created each day

You're basing this off the assumption that many will quit mining after the next halving

Historically, this has not been proven to be true.

The amount of bitcoin that is be mined every day in not depended on the total number of miners. The block reward is a fixed amount. Now it is 25 bitcoin and after the halving it become 12.5 Bitcoin roughly every 10 minutes. So the amount of grow everyday is indeed halved but not by the number of miners.

[ahmedjamal1998]

when they block rewards halves there will be less coins created each day

You're basing this off the assumption that many will quit mining after the next halving

Historically, this has not been proven to be true.

The amount of bitcoin that is be mined every day in not depended on the total number of miners. The block reward is a fixed amount. Now it is 25 bitcoin and after the halving it become 12.5 Bitcoin roughly every 10 minutes. So the amount of grow everyday is indeed halved but not by the number of miners.

So what is the main main reason for this halvening??

Like who is in charge of it?

[kwaasteniet]

when they block rewards halves there will be less coins created each day

You're basing this off the assumption that many will quit mining after the next halving

Historically, this has not been proven to be true.

The amount of bitcoin that is be mined every day in not depended on the total number of miners. The block reward is a fixed amount. Now it is 25 bitcoin and after the halving it become 12.5 Bitcoin roughly every 10 minutes. So the amount of grow everyday is indeed halved but not by the number of miners.

So what is the main main reason for this halvening??

Like who is in charge of it?

Nobody is in charge of it. Also the halvening is stipulated in the bitcoinprotocol from 2009 and nobody can change that without the permission of more than 50% of all bitcoin users. That is the power of bitcoin.

[iram66680]

when they block rewards halves there will be less coins created each day

You're basing this off the assumption that many will quit mining after the next halving

Historically, this has not been proven to be true.

The amount of bitcoin that is be mined every day in not depended on the total number of miners. The block reward is a fixed amount. Now it is 25 bitcoin and after the halving it become 12.5 Bitcoin roughly every 10 minutes. So the amount of grow everyday is indeed halved but not by the number of miners.

So what is the main main reason for this halvening??

Like who is in charge of it?

Nobody is in charge of it. Also the halvening is stipulated in the bitcoinprotocol from 2009 and nobody can change that without the permission of more than 50% of all bitcoin users. That is the power of bitcoin.

So it can be refused to proceed with the halving if 50% of bitcoiners oppose of it?
That I was not aware of 

[zodiac3011]

when they block rewards halves there will be less coins created each day

You're basing this off the assumption that many will quit mining after the next halving

Historically, this has not been proven to be true.

The amount of bitcoin that is be mined every day in not depended on the total number of miners. The block reward is a fixed amount. Now it is 25 bitcoin and after the halving it become 12.5 Bitcoin roughly every 10 minutes. So the amount of grow everyday is indeed halved but not by the number of miners.

So what is the main main reason for this halvening??

Like who is in charge of it?

Nobody is in charge of it. Also the halvening is stipulated in the bitcoinprotocol from 2009 and nobody can change that without the permission of more than 50% of all bitcoin users. That is the power of bitcoin.

So it can be refused to proceed with the halving if 50% of bitcoiners oppose of it?
That I was not aware of 

well... just like many altcoin. Bitcoin can be hard forked but it's a big decision so it must be agreed by the majority. It's quite obvious I can say

[chiajw1]

Bitcoin halving is when miners receive half of the original bitcoin when a new block is mined. It started with 50 btc per blocks mined. Then at November 28, 2012 the first subsidy halving occur. Some speculate that the price will increase dramatically because of the supply deceases and demand increasing. Others say that the miners will lose profit and stop mining, causing it to drop. However there is not much changes happened. THe bitcoin halving happens every 4 years to control the supply of bitcoin. Maybe in year 2140 there will be no new bitcoin generated.
You can read more at http://cryptocoinblog.com/what-is-the-halving-effect-in-bitcoin-mining-investments/

[Cyaren]

Halving basically means the halving of the block reward. Currently this figure stands at 25 BTC per block, it's soon going to be only 12.5. It's a great time to buy in, I suppose.