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Author Topic: What is Bitcoin Halving.  (Read 377 times)
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January 28, 2020, 07:49:44 PM

There is no single answer to this question. Some believe that the price of bitcoin should increase after halving, because the reward for miners will be halved. Others believe that the number of coins that are mined by miners is not so large that it leads to an increase in the price. But I think that in the future the price will still grow. And it won't be related to halving.

This is a good comment, but worded a bit confusingly so I want to help clarify it.

The price of any investment, such as bitcoin, is driven by the relationship between the supply of that investment and the demand for it. When a halving event occurs the rate of bitcoins mined per block gets cut in half (that's where the term "halving" comes from). This effectively reduces the growth rate of supply. There is less bitcoin being mined fresh every 10 minutes forever forward.

So if demand remains the same and the rate of supply slows the price will increase. This is why there's a history of price increases about 12 months or so after the halving event. The price doesn't stay that high (it never has) but the data, history says that a bull market is on the horizon.

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