Does Coin Value being halved increase Value?

[CrimsonGT]

Granted there is never any guarantees, however does the block value of a coin being halved generally increase the value of the coin? I have somewhat ignored DOGE coin just because it seemed silly, however I read that the block reward with halve next month. I would assume this would have a considerable effect on the value but curious if this is usually the case?

[kalus]

this is a good question.

i say no, becuase most people who do buy doge do not mine doge.  when block rewards halve it first affects miners the most, but the supply of dogecoin currently outstrips demand when you look at cryptsy order books.  i don't think surplus will change for weeks or months, if at all, after the block halving.

however, i do think when the block rewards halve a few whales will take this as an opportunity to pump-and-dump dogecoin.  I would be cautious of thinking there is a get-rich opportunity, because there are a shitton of sellers, fewer buyers, and still 70% unmined dogecoins out there.

to see the forest for the trees, in 18 months we'll have mined the last dogecoin.  i believe that will signal a genuine increase in value.  for now, i would advise mining heavily - everyone else seems to be doing this as the difficulty rose from 3xx to 5xx in a week.  I believe halving the block rewards is more of a miner signal than a signal to invest.

disclaimer i am a miner and am rich in shibe.  I also think the coin is silly, but so far it has somehow managed to work well with mining pools and switching pools that other coins cower in fear from.  the value continues to go up with supply, so i could be completely wrong.  since i hold dogecoin, i would be happy to be proven wrong. 

[sundownz]

Most coins seem to increase in value with difficulty at least to a point -- halving the reward is basically like doubling difficulty in effect.

IMO I'd expect at least a small increase in the value.

[crazyates]

People were wondering about this when the BTC rewards halved. The price was more unstable for a few days after it did half, but didn't double in price.

Well, it did eventually, but that wasn't cuz of the reward halving.

[financial_analyst]

No effect on price since the information that the block reward is halved is known beforehand to the market and is reflected in the current price of DOGE.

[ndnh]

True. In the short term the market can react in both ways... But in the long term it is going high TO THE MOON !

[holyterrorboss]

this is a good question.

i say no, becuase most people who do buy doge do not mine doge.  when block rewards halve it first affects miners the most, but the supply of dogecoin currently outstrips demand when you look at cryptsy order books.  i don't think surplus will change for weeks or months, if at all, after the block halving.

however, i do think when the block rewards halve a few whales will take this as an opportunity to pump-and-dump dogecoin.  I would be cautious of thinking there is a get-rich opportunity, because there are a shitton of sellers, fewer buyers, and still 70% unmined dogecoins out there.

to see the forest for the trees, in 18 months we'll have mined the last dogecoin.  i believe that will signal a genuine increase in value.  for now, i would advise mining heavily - everyone else seems to be doing this as the difficulty rose from 3xx to 5xx in a week.  I believe halving the block rewards is more of a miner signal than a signal to invest.

disclaimer i am a miner and am rich in shibe.  I also think the coin is silly, but so far it has somehow managed to work well with mining pools and switching pools that other coins cower in fear from.  the value continues to go up with supply, so i could be completely wrong.  since i hold dogecoin, i would be happy to be proven wrong. 

In 18 months we'll have mined the last dogecoin? There will be an annual inflation of dogecoin by 5 billion a year forever. The dogecoin developers decided not to fix the infinite dogecoin problem. Read this article here http://arstechnica.com/business/2014/02/dogecoin-to-allow-annual-inflation-of-5-billion-coins-each-year-forever/. Don't let this freak you out though. I still support dogecoin %100 but I think the value is going to more than double after it halves and it will probably be a good time to sell. There is another thread about this that has been going for awhile, check it out at https://bitcointalk.org/index.php?topic=426382.new#new.