Why is the value dropping?

[Sophia1029]

Yeah, I think that most of the users here aren't exactly educated nor experienced in the world of finance.

This is probably true, I know very little about economics. That is why I posted this thread in the first place so you guys can explain it. I have been learning a lot reading through this.

[adaseb]

The reason why its dropping is because of miners. They keep dumping and dumping to pay for their rigs. Also GPU miners are suffering also.

There has to be a halving soon.

[favelle75]

The reason why its dropping is because of miners. They keep dumping and dumping to pay for their rigs. Also GPU miners are suffering also.

There has to be a halving soon.

GPU miners? Wtf? Is it 2012?

[Sophia1029]

Sorry noob question here... What does halving mean? Why will there be one soon?

[NotLambchop]

Sorry noob question here... What does halving mean? Why will there be one soon?

Block reward halving, meaning the miners will get 50% less coin for solving a block.  This makes mining less profitable by decreasing BTC inflation, which is ~10% now.  It will happen sometime in 2016.

[Swordsoffreedom]

Electrical costs of generating are matching costs of production
Without any other marginal benefits
So guess its close to par for now.

[mmortal03]

Sorry noob question here... What does halving mean? Why will there be one soon?

About every four years, the amount of bitcoins mined per block is cut in half.