What happens to Bitcoin value when block reward drops?

[MinerTrain213]

I just started mining a few weeks ago but mining will continue to be strong and an asset to anyone who has a miner. Mining is just one way of being rewarded and it also allows the market and the entire globe to get in from a merchants perspective with 0 ZERO fees. When the rewards start to go down more the fees will start to rise but at best they should never get to the point of our current CC companies.

[yogi]

The last time the block reward halved the price remained the same. But the number of transactions went though the roof as everybody wanted to have a transaction in those historic blocks.

[odolvlobo]

What is likely to happen to the Value of BTC against USD when the block reward is halved in 2016? Any predictions and reasons for you forecast. Is the Value likely to return to where it was before the drop?

Nothing happened the first time it halved. Nothing will happen the next time.

The price = Skyrocket

No.

It will cost more to mine new coins so pretty much guarantees as rise in Bitcoin price.

When the bitcoin reward per block gets reduced, there is a scarcity of Bitcoins which shoots up the value.

So, when the reward halves, it effectively becomes more scarce, which will cause its value to rise.

The block reward has no virtually no effect on the supply of bitcoins. 3600 coins are mined daily vs. 200,000 coins traded daily. Even if all the newly mined coins were sold every day, halving that would change volume by only 1%, which is less than the daily variance.