Why does the halving increase the price?

[Doan9269]

- There have been 3 halvings, and in all of them the BTC price was insignificant compared to what it is today. Am I the only one who thinks that it is premature to speak of a pattern when something only happened 3 times before, and in completely different price ranges? Buying 1 BTC was realistic for many people before the first 3 halvings. Now that is no longer the case.

This can be determined on when each everyone of us made the decision on joining the bitcoin network and adopted it use for an investment, some never have that kind of knowledge of making an investment with the purpose of targeting the halving because some years back, many were only having little about the bitcoin knowledge.

- Why would people invest loads of money in BTC after the halving and not before?

Because after halving there comes bullrun and the bitcoin market price rises to a new all time high till it achieved the maximum it could.

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[Jegileman]

- There have been 3 halvings, and in all of them the BTC price was insignificant compared to what it is today. Am I the only one who thinks that it is premature to speak of a pattern when something only happened 3 times before, and in completely different price ranges? Buying 1 BTC was realistic for many people before the first 3 halvings. Now that is no longer the case.

Many would have thought like you but to be honest, this type of thought never came to my mind when I learned about bitcoin. It is so transparent and so true that bitcoin will still follow the same pattern as it has done previously. No too many people will keep investing in a project that is not worthwhile to be invested in, someone must have seen the loophole or something that would not make anyone invest in it if there’s any one. Bitcoin price will continue to increase and surpass previous all time high after every halving, that is just an event that will continue in that manner.

- Why would people invest loads of money in BTC after the halving and not before?

Because before the halving is the time you will get to buy bitcoin at a lower price. In past events, you will only see an uprise in price after every halving and everyone believes it will still follow the same pattern even in the upcoming halving.

[dimonstration]

I personally had about 70k in savings and spent 13k on 0.3 BTC. I was interested the whole year, but I was chasing the 10k low that we never hit.
I'm in doubt, whether I should buy 0.2 more or there will be a better opportunity.

When in doubt, DCA is your friend to safely enter on Bitcoin without thinking too much about lower price since you will purchase in average price. It’s normal to become cautious and play safe if you knew that the price can slide down any moment but you can’t deny the fact that price can go upward continuously without giving opportunity to enter on mich lower price.

You should buy in small fraction on different time frame if you want to accumulate without worrying much if the price will dump or pump.

[Bushdark]

- There have been 3 halvings, and in all of them the BTC price was insignificant compared to what it is today. Am I the only one who thinks that it is premature to speak of a pattern when something only happened 3 times before, and in completely different price ranges? Buying 1 BTC was realistic for many people before the first 3 halvings. Now that is no longer the case.

This can be determined on when each everyone of us made the decision on joining the bitcoin network and adopted it use for an investment, some never have that kind of knowledge of making an investment with the purpose of targeting the halving because some years back, many were only having little about the bitcoin knowledge.

- Why would people invest loads of money in BTC after the halving and not before?

Because after halving there comes bullrun and the bitcoin market price rises to a new all time high till it achieved the maximum it could.

I have been seeing people talking about the Bitcoin halving while so many do not have sufficient understanding about what it really entails. Even though we might not have experienced what halving Actually means and what it entails. We need to understand one thing which is bull run. Halving is a time when the price of Bitcoin which normally triggers the price of altcoins to go bullish. We can make good profits from halving if we know what we are doing and the best way to do that is to keep buying and holding for when the actually time will comes.
 

[CryptopreneurBrainboss]

- There have been 3 halvings, and in all of them the BTC price was insignificant compared to what it is today. Am I the only one who thinks that it is premature to speak of a pattern when something only happened 3 times before, and in completely different price ranges? Buying 1 BTC was realistic for many people before the first 3 halvings. Now that is no longer the case.

Bitcoin has a success rate of 100% when you consider what happens after it complete its halving cycle. Why should we doubts that the same thing would repeat itself when it hasn't failed before. The three times, isn't out of a bigger number of attempts that you can say it doesn't have a 100% success rate. All the halving results were the same effect but just that they had different timeframe but the main point is that the price changed significantly after the halving has been completed.. Bitcoin has had all its previous halving boost its price without leaving any year untouched.

This is a pre programmed mechanism so I don't get it when people are doubting that the price will also increase this time around. The signs are already there, it isn't just because of the halving been completed that makes the price of Bitcoin to increase, there are other factors but the completion of the halving puts other factors into motion.

- Why would people invest loads of money in BTC after the halving and not before?

Naturally we tend to follow trends as humans, fomo kicks in when the price of asset begin to increase as people try to catch the train before it leaves them behind. When Bitcoin starts increasing different sets of people with different beliefs begin to take action. We have those that didn't believe the price will increase so when it begins to happen the fomo into the market. We also have those that didn't have full convictions and only bought a small portion of Bitcoin so as the see the market moving, they buy more. Basically people won't want to miss out so they'll buy more as they begin to see the price of Bitcoin increasing with all the positive sentiments surrounding Bitcoin. To be at a better position, it's better you buy when the fomo hasn't kicked in and that's by accumulating before the halving is completed.

[Etranger]

- Why would people invest loads of money in BTC after the halving and not before?

I believe, it is connected to FOMO. Halving symbolises something new, some changes. It feels like there are less and less bitcoin available. And more and more people start worrying that they don't own any so far. That is because they buy. And they notice that many people around are buying as well. And the effect becomes more massive.

[Coyster]

- Why would people invest loads of money in BTC after the halving and not before?

I cannot tell exactly why people do what they do, but i think people buy Bitcoin after the halving and when the price begins to rise, because they prefer to buy assets that are rising, so they can make profits immediately and sell. The people who buy in this way do not really believe in Bitcoin and they do not want to hodl it, but they basically just want to earn ROI in the short term.

What is a good price range for an air gapped wallet, for someone who only manages 0.3 BTC?

This amount is more than enough to have an air-gapped or hardware wallet, and as for an air-gapped wallet you do not even have to spend money to get one, you can create one for yourself with some of your old devices.

[Huppercase]

A few random beginner questions:

- There have been 3 halvings, and in all of them the BTC price was insignificant compared to what it is today. Am I the only one who thinks that it is premature to speak of a pattern when something only happened 3 times before, and in completely different price ranges? Buying 1 BTC was realistic for many people before the first 3 halvings. Now that is no longer the case.

Let me tell you something, I remember back in the days when I was still in college and anytime they gave me an amount money for breakfast, I used to be happy because the amount can get me anything they sell in the school and I will be okay but guess what today, that same amount of money are giving to toddlers for breakfast and they will complain that is too little, it wouldn't do much for them and that is because the purchasing power of Fiat is dying every year. What you bough last 5 years for a $, you can't do that today, that applied to bitcoin, not saying we might not see bitcoin at those price again but with development coming so far in bitcoin, $40k will become a normal for people that have the means to buy and $7k might be a history.

When Bitcoin was traded around $3, many of us here didn't have the means to buy it then, many of use in 2009 would'nt look at bitcoin twice but it is because the nature and profit is appealing that is why they want it and people that have the means and want to buy are going to buy and they will sell when they have a significant profits.

- Why would people invest loads of money in BTC after the halving and not before?

Bitcoin bull run most of the time is after the halving, they don't want to be stuck when they aren't sure yet. The answer is simple, has believe that Bitcoin price grow in every four year circle and they know that miners wll anticipate for the price increased because they will most likely be operating at lost.

[sunsilk]

An old desktop or laptop if you have will be enough. The important thing is to download the official wallet of Electrum from its official website because too many clones and fake out there.

Yes an old computer is good in a way that you will remove the wifi and bluetooth modules. Sparrow can also be used, it is a good bitcoin wallet.

Yeah, a total disconnection from the internet. IIRC, I've done this I think on my early days when I haven't bought yet my hardware wallet.

It's still realistic and the same questions will rise again when we're gone far and the prices are too much already.

How many people have $40 000 they can miss? I'd say 0.01%

I personally had about 70k in savings and spent 13k on 0.3 BTC. I was interested the whole year, but I was chasing the 10k low that we never hit.
I'm in doubt, whether I should buy 0.2 more or there will be a better opportunity.

I've seen a lot of people talking about that low and they'll start buying. But it seems that we're not going to see it anymore and this how the progress on this market is. We see higher lows every time the cycle is in and it's your call whether you'll buy soon before the halving or you'll wait a little bit longer.

That's your money so, spend them wisely.

[The Cryptovator]

The price of bitcoin always depends on investor demand. After halving mining rewards reduce,  investors think less Bitcoin will be added to circulation now than in the past. Most likely, that's the reason why they jump into Bitcoin after halving instead of before halving. But this time it seems investors are also interested before halving, hence the price increasing before halving as well. We are already in the bull market and might increase more after the halving. Also, ETF rumours are playing a major role in the current bull run. If ETF gets approved, then we will see more pump on the Bitcoin chart. However, each investor has a different mindset, and they think differently, which doesn't necessarily match my thoughts. I just expressed my personal opinion.

[Kelward]

- Why would people invest loads of money in BTC after the halving and not before?

I don't know whether you have data to proof that people actually buys more Bitcoin after halving? From my experience and observation I think that people buys more Bitcoin before halving, because when halving is happening Bitcoin supply is cut into half, meaning that the scarcity will make price to increase. So ideally people will know that it's more profitable to buy before halving, knowing that after it that price will keep increasing till it hits ATH. So correct me if I'm wrong, because this is mainly based on my personal observation.

[Makus]

Let me tell you something, I remember back in the days when I was still in college and anytime they gave me an amount money for breakfast, I used to be happy because the amount can get me anything they sell in the school and I will be okay but guess what today, that same amount of money are giving to toddlers for breakfast and they will complain that is too little, it wouldn't do much for them and that is because the purchasing power of Fiat is dying every year. What you bough last 5 years for a $, you can't do that today, that applied to bitcoin, not saying we might not see bitcoin at those price again but with development coming so far in bitcoin, $40k will become a normal for people that have the means to buy and $7k might be a history.

When Bitcoin was traded around $3, many of us here didn't have the means to buy it then, many of use in 2009 would'nt look at bitcoin twice but it is because the nature and profit is appealing that is why they want it and people that have the means and want to buy are going to buy and they will sell when they have a significant profits.

- Why would people invest loads of money in BTC after the halving and not before?

Bitcoin bull run most of the time is after the halving, they don't want to be stuck when they aren't sure yet. The answer is simple, has believe that Bitcoin price grow in every four year circle and they know that miners wll anticipate for the price increased because they will most likely be operating at lost.

I love the way you used your college experience to explain the price movement of Bitcoin, any newbie would understand perfectly if he can relate well. For some weeks now, the price of Bitcoin has been wondering about in $42, $43. And this might even be the least we may see or experience this year, it's possible. Talking about the devalue of fiat currency, that is a continuous process especially in my country, our fiat currency get worse every now and then. The only way to escape is keep some of your savings in Bitcoin network.

[Taskford]

- Why would people invest loads of money in BTC after the halving and not before?

I don't know whether you have data to proof that people actually buys more Bitcoin after halving? From my experience and observation I think that people buys more Bitcoin before halving, because when halving is happening Bitcoin supply is cut into half, meaning that the scarcity will make price to increase. So ideally people will know that it's more profitable to buy before halving, knowing that after it that price will keep increasing till it hits ATH. So correct me if I'm wrong, because this is mainly based on my personal observation.

Actually that is happening when hype is going to happen that's why we see a lot of people got FOMO at that time since they don't want to be left behind on the event happening that's why we can assume that more buy orders really happen when halving happen plus other contributing factor is the greed feeling is high for people at that time that maybe the reason why bitcoin pump when halving.

We may not know the 100% accurate answer with this but what it shown right now that when halving came to many people discuss about positive things to happen with bitcoin that's why to many people are convince to buy and hold. But let see what will happen for this year halving since we can speculate if there's something good will happen or we will see different condition right now and bitcoin will remain like this despite of this long time event awaited by a lot of people.

[Etranger]

But let see what will happen for this year halving since we can speculate if there's something good will happen or we will see different condition right now and bitcoin will remain like this despite of this long time event awaited by a lot of people.

I think that the "bad" scenario when the halving wouldn't have positive attitude to bitcoin is rather unlikely to happen. There has to be really unfortunate news for this to happen. I more tend to suggest that the history will somehow repeat itself and we will see a new ATH after this year halving. Like we did previous times.

[Lucius]

~snip~

It is not likely, but it is certainly possible. It should definitely be some kind of "black swan" event that would crash the global market and cause disruptions all over the world.

If it is more or less business as usual, then it will very likely happen like every time before, because all those who have invested a lot of money in Bitcoin will in any case use the halving as a trigger for a new bull run. Some believe that the price of BTC will go up after the halving because miners "produce" half as much BTC as before, but even though it may have made some sense before, today's 900 BTC per day is not something that has too much impact on the market considering the amount of BTC that circulates through the markets anyway.

[Sim_card]

- Why would people invest loads of money in BTC after the halving and not before?

I believe, it is connected to FOMO. Halving symbolises something new, some changes. It feels like there are less and less bitcoin available. And more and more people start worrying that they don't own any so far. That is because they buy. And they notice that many people around are buying as well. And the effect becomes more massive.

Those who bought after the halving are those who get carried by the hypes and some people are like that, they don't invest if that commodity is not the talk of the town on how it has increased in price, this makes them to feel that is the best time for them to invest, thinking that the price will continue to pump till infinity and vefore they know it they will miss out from taking profit and run at loss the moment the bull run is over.

[Agbe]

Bitcoin is a digital currency and it was not meant to be stabled or coming back to it normal position whenever the period has come but no. Bitcoin in it volatile nature was created to value ahead and not to come back periodically. And all the halving that had been occurred, this coming one is my first one to be witnessed. And when new Bitcoins will be released, it would be 4 yer interval and this yes April is the designated time for the halving. We can't predict Bitcoin halving, and there is still time so let see how the halving will be in the ine when half Bitcoin will be released to the Blockchain. And it is not a matter of premature, you have only spoken your mind.

[Odusko]

Investing after halving massively is something that is becoming norm and no special reason. But I think what makes people to start it is because after halving, the mining reward decrease by half which makes the supplying of bitcoin into the market to reduce, making it deflationary and valuables.

Because pf.the reduction in the Bitcoin block rewards that pave the way for more scarcity and resultant into increase in the value of the commodity, so this is not only peculiar to Bitcoin alone,  but every other form of investment or asset that has a circulating supply.
Bitcoin halving is a memorable event in the Bitcoin network that paved the way for alot of scarcity and price increases even though the price of Bitcoin may not automatically increase after halven, and if there is any possible discount on Bitcoin price after halven many expert investors will buy heavily into it because they already know that in no distance time, Bitcoin price may reach and record a new all-time high which will put them in profits.

[nakamura12]

There's nothing special about halving or specific reason why the price will increase but I think people investing in Bitcoin because when halving is done the reward in mining will be reduced in half meaning that the new BTC that is mined are not the same as before. It is now normal to invest in btc when halving is near. When you think about it where the mining reward is halved then that only means that if many people are acquiring btc then it would be very hard to accumulate since the reward is halved and the more people buy then the more they are willing to pay higher price just to obtain btc hence price increases.

[promise444c5]

The halving creates an idea of scarcity due to the reduction of block reward to miners. This in turn reduces the introduction of new Bitcoins into the market, mounts pressure on available Bitcoins in circulation, creates reasons why there should be more hodlers and as well, goes about to advertise for more patronage. It’s become a significant event in the history of cryptocurrency, field with expectation and people now bank on this for high returns.

The word Scarcity stands as the major trigger for the BTC price pump which is usually driven by Halving. Thus due to the market pump  more investors arise and everyone seem to be hoarding it enhancing  more scarcity moreover, the Bitcoin is getting halved , reducing the circulation of bitcoins entirely.  Therefore, there are many  a lot of reason to buy Bitcoin currently