Reason why Bitcoin halving matters more than people think

[Bitco55]

Every four years, the crypto world encounters a great event, Bitcoin s halving. People usually talk about it, like it's a magic event that pumps the price of Bitcoin, but it's much deeper than that.

When BTC miners verify transactions, they earn new Bitcoin as reward. But, Satoshi himself designed the rewards to halve after every 210,000 blocks, ie, approximately every four years. The purpose of this is to reduce inflation and enforce scarcity. Unlike with normal currencies where government can print anytime and cause inflation, BTC halving reduces it's new supply. Therefore demand rises, but new supply falls, scarcity increases pushing price up. Needless to say government should really take wisdom from the halving system. Asides the price effect, I think one major importance of the halving even is it's trust mechanism it create. No one influence the inflation. It's precoded, transparent, and predictable. This here, is exactly what makes Bitcoin decentralized money.

[NurseHub]

Yet seem not to see reason why it matters more than people think, it's more like the title should be " The halving mechanism which should be adopted by government".

Well regardless it's obvious that governments have a totally different operating process and a system that is meant for centralisation while bitcoin is a system of the direct opposite, so adoption of the halving mechanism which bitcoin uses is not applicable to government or centralisation. far from each other.

[Hazink]

Needless to say government should really take wisdom from the halving system. Asides the price effect, I think one major importance of the halving even is it's trust mechanism it create.

​How do you want government to take an idea of what will take power away from them? That's not going to happen? Do you think they don't know the law of demand, or do you think they don't know the effect of printing local currency over and over again for the purpose of meeting demands which they print more than the economy can carry? They do it to gradually sink economy for their own selfish interest if you ask me not that they don't know what they are doing or need ideas.

No one influence the inflation. It's precoded, transparent, and predictable. This here, is exactly what makes Bitcoin decentralized money.

Predicted how? What do you mean, if there is anything I could say that gives bitcoin that full decentralization figure, it's the fact that there is no central control, no one man can decide what will happen and what will not? That's what makes it different, as for transparency, most centralized coins are transparent as well.

[_act_]

Needless to say government should really take wisdom from the halving system.

The government know all these but they are not interested in such money when it comes to their citizens but do not be surprised if you see them holding gold and bitcoin but using their fiat to scam their citizens that do not know much about investing in assets but saving fiat. The government have nothing to learn than inflation to occur which is the tool they are using to do the obvious manipulations.

[Majestic-milf]

 

Needless to say government should really take wisdom from the halving system

It's not everyone that would want to learn a thing or two from it's competition. Even though most governments are now being tolerant of Bitcoin and cryptocurrencies in general that doesn't mean they like it, infact from how I see it, it's like for those who permit it's operation either do so because of the gain it would add to the economy or because other nations are doing it, so they'd want to tag along.
 Bitcoin is unique. It is money that can be used for payment of goods and services yet it has no external control from any group or entities which makes it interesting and appealing.

[God Of Thunder]

Needless to say government should really take wisdom from the halving system. Asides the price effect, I think one major importance of the halving even is it's trust mechanism it create. No one influence the inflation. It's precoded, transparent, and predictable. This here, is exactly what makes Bitcoin decentralized money.

Unfortunately, the government cannot do that. They take taxes from us, and they tax us again with inflation. Why does inflation happen? It's because the government prints more money and invests it somewhere, and taxes everyone regardless of their financial position. This is a big form of taxation that we do not understand. It will continue to happen, and the government won't stop doing it. We can dream about it, but it won't come true.

If the government can do it, do you think people will leave Bitcoin? No. People will still use Bitcoin because it's their own money and their own bank. You can keep it to yourself and no one hold it for you unless you decide to keep it in some centralized services.

[OcTradism]

Every four years, the crypto world encounters a great event, Bitcoin s halving. People usually talk about it, like it's a magic event that pumps the price of Bitcoin, but it's much deeper than that.

Price rises as Bitcoin halving effects because it creates noise on media so that more people join this industry as newbie miners, newbie investors, traders and even just speculators.

Generally it helps Bitcoin blockchain and network more secure by having increasing hashrate around the halving, and bring more bitcoin demand to this market so with new supply halves while demand increases, you can see how the Supply and Demand Principle works. Price must rise unavoidably, just when this effect is shown on the market and Bitcoin price.

[Darker45]

I don't agree with you saying that Bitcoin halving reduces its new supply therefore demand rises. It's not the reduction of the supply that causes the rise in demand. It's the adoption that pushes the demand up.

Anyway, Bitcoin shows the beauty of having a monetary system that's independent, run by codes cast in stone, operating on rules and not rulers. Fiat can't be like this. It's run by a handful of corruptible yet so powerful individuals. It's so susceptible to abuses, greed, mismanagement, lack of foresight, and whatnot. The fiat system is so flawed. The only reason why it's running until now is that it's enforced by the governments.

[Die_empty]

Unlike with normal currencies where government can print anytime and cause inflation, BTC halving reduces it's new supply. Therefore demand rises, but new supply falls, scarcity increases pushing price up. Needless to say government should really take wisdom from the halving system. Asides the price effect, I think one major importance of the halving even is it's trust mechanism it create. No one influence the inflation. It's precoded, transparent, and predictable. This here, is exactly what makes Bitcoin decentralized money.

The government will never adopt a decentralised monetary system because it always wants to control it. They would also not adopt the halving system of Bitcoin because they need to keep printing money to fund its deficits and implement its monetary policies.

I don't agree with you saying that Bitcoin halving reduces its new supply therefore demand rises. It's not the reduction of the supply that causes the rise in demand. It's the adoption that pushes the demand up.

Adoption increases demand and if the supply at that time is low, the price will definitely increase. Halving causes a reduction in supply and if demand is high during this period, like we saw this time because of institutional investors, the price will rise. 

[AprilioMP]

Needless to say government should really take wisdom from the halving system. Asides the price effect, I think one major importance of the halving even is it's trust mechanism it create. No one influence the inflation. It's precoded, transparent, and predictable. This here, is exactly what makes Bitcoin decentralized money.

All the wisdom of the Bitcoin system is known to the government. Even what you don't know, they have more control over it, but they still stand by their stance in structuring the financial system which they consider to be the best apart from Bitcoin.
Transparent, full control, all transactions recorded is a system that could provide an opportunity to eliminate corrupt figures, but the problem is that they stick to their guns instead of implementing it in their system, making just admitting it a bit heavy.

[Doan9269]

Every four years, the crypto world encounters a great event, Bitcoin s halving. People usually talk about it, like it's a magic event that pumps the price of Bitcoin, but it's much deeper than that.

If we look into the entire procedure that we have in bitcoin halving, we are going to see a much obvious difference from how the fiat system operates, which one of the benefits of bitcoin halving is to go against the incidence of inflation that has been looming the economy and make the rate of what we received as supply decreases while it's corresponding value increases, this also makes it impossible for inflation to occur, difficult for manipulation and impossible for it to be controlled or altered by any entity or institutions including government or core developers.

[pooya87]

When BTC miners verify transactions, they earn new Bitcoin as reward.

Miners don't earn a reward for "verifying" transactions. Not to mention that it is full nodes that verify transactions. What miners do is to compute hashes of the block header they build (which is the "work" in "proof of work" algorithm) to find the right combination that has the required hash for next block.

Needless to say government should really take wisdom from the halving system.

Well that's not how the economy is designed to work though. For good or bad, it is designed to work based on fiat system with fiats that have no cap. It has its own pros and cons but what matters here is not the fact that fiat doesn't have a cap. The problem is when governments start printing fiat to cover up their budget deficits not to inject into "real" economy (for example for production, in actual businesses, etc). That's what causes inflation followed by economic hardship.

[Porfirii]

No one influence the inflation. It's precoded, transparent, and predictable. This here, is exactly what makes Bitcoin decentralized money.

Predicted how? What do you mean, if there is anything I could say that gives bitcoin that full decentralization figure, it's the fact that there is no central control, no one man can decide what will happen and what will not? That's what makes it different, as for transparency, most centralized coins are transparent as well.

I think that the OP means that the inflation is predictable -perhaps not the best way to explain it, because the halving is preset since the design which means that no one can make decisions on the minting system and put the printer on, while at the same time that design is public and transparent for everyone, so it's totally predictable where the next halving will happen and what effects we can expect from it.

[Lida93]

I don't agree with you saying that Bitcoin halving reduces its new supply therefore demand rises. It's not the reduction of the supply that causes the rise in demand. It's the adoption that pushes the demand up.

Anyway, Bitcoin shows the beauty of having a monetary system that's independent, run by codes cast in stone, operating on rules and not rulers. Fiat can't be like this. It's run by a handful of corruptible yet so powerful individuals. It's so susceptible to abuses, greed, mismanagement, lack of foresight, and whatnot. The fiat system is so flawed. The only reason why it's running until now is that it's enforced by the governments.

With each halving attracts more adoption and that's how the demand increases causing a rise in price with the inflow of more funds.

Unlike bitcoin halving that's predetermined within a timeframe and transparent for all to see. In the fiat system money printing has no limits, the government can decide at will to print as much money as they want to service whatever they're lacking the funds for, and this in turn causes inflation on the economy reducing the value of the currency meanwhile for bitcoin it's a value increase with each halving, and not single group of individuals have the power to alter the process. The central government for their financial corruption wouldn't want to adopt a mechanism like bitcoin which makes things transparent and open source.

[john_egbert]

I think that the OP means that the inflation is predictable -perhaps not the best way to explain it, because the halving is preset since the design which means that no one can make decisions on the minting system and put the printer on, while at the same time that design is public and transparent for everyone, so it's totally predictable where the next halving will happen and what effects we can expect from it.

I agree. Gov may close all the doors that are not good for them to open, whereas with BTC: it's obvious when and how things happen, we just don't know how people would react to them and how BTC would be affected due to events worldwide..

[aoluain]

Definitely the Bitcoin halving matters, its a hard coded event which highlights Bitcoins
deflationary nature in that the supply is decreased which is opposite to FIAT.

Nobody can "print" more Bitcoin after the 21,000,000th one is mined.

The halving ensures that the supply is cut every 210,000 Blocks. The timing and amounts
of Bitcoin after each halving is exact, its coded in so everyone knows what future supply
is going to be. This is all totally opposite to the FIAT system.

The halving events are mostly viewed as a market influencing event but along with coding,
development, mining and Node running the Halving is a hugely important event signalling
all of the above.

[SilverCryptoBullet]

Nobody can "print" more Bitcoin after the 21,000,000th one is mined.

It's mining, not printing as Bitcoin blockchain is a Proof of Work (PoW) blockchain, not Proof of Printing.

In addition, nobody who already have bitcoins will want Bitcoin total supply to be changed and increased more than 21 millions or exponentially inflationary in the future. It's only hope of people who don't have bitcoins, and also don't have enough knowledge too.

21 millions FAQs
Can the limit be changed?

Technically yes, though this is really a question of governance and incentives. Anyone can change the limits enforced by their own node - the hard part is convincing everyone else to do the same with their nodes. For a deep dive, check out:

Can Bitcoin's Hard Cap of 21 Million Be Changed?

The 21 millions of total supply can be changed, but do people want to have that change, as I said with bitcoin holders, they are surely against this idea.

[betswift]

Gov doesn't want a system that would limit it in any way.

So it wouldn't be a good lesson for them, more like something that binds them to the rules that would limit its operations and make them have fewer windows to maneuver.

[Sammye3]

The government on its own has control over fiat and that has given them control over the economy as well by manipulating the system for their own selfish interests.
And that has seen the people suffer for the depreciation in the country's currency and looking out to hold assets with much value.
Bitcoin halving is a reminder of what is to come, more like preparation for the bigger phase and that has kept so many holders on edge.
The government would never implement this system so they have control and Bitcoin halving would always be as it gives value on the long run.

[hero_the_bossman]

The government on its own has control over fiat and that has given them control over the economy as well by manipulating the system for their own selfish interests.
And that has seen the people suffer for the depreciation in the country's currency and looking out to hold assets with much value.
Bitcoin halving is a reminder of what is to come, more like preparation for the bigger phase and that has kept so many holders on edge.
The government would never implement this system so they have control and Bitcoin halving would always be as it gives value on the long run.

I see the points you presented as those that hold value: truly, why do something like BTC if it isn't controlled the same way fiat is?

Or just go for CBDCs for that matter.