Bitcoin Forum
March 19, 2024, 10:20:05 AM *
News: Latest Bitcoin Core release: 26.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Why do most people think that the price will rise because of the block halving?  (Read 1074 times)
dothebeats (OP)
Legendary
*
Offline Offline

Activity: 3584
Merit: 1352


Excel is fun


View Profile
January 17, 2015, 08:32:21 PM
 #1

I've been reading posts recently and I've seen many members saying that the price WILL increase because of the block halving. I understand the basics of supply and demand but I cannot determine why will it push the price upwards in bitcoin's case? As more and more coins are being minted, the higher the difficulty will be, and the more miners will quit on mining because it seems to unprofitable. However, that still doesn't help determine the price of bitcoin.

Can anyone help me understand this block halving-price relationship?

▄▄███████▄▄
▄██████████████▄
▄██████████████████▄
▄████▀▀▀▀███▀▀▀▀█████▄
▄█████████████▄█▀████▄
███████████▄███████████
██████████▄█▀███████████
██████████▀████████████
▀█████▄█▀█████████████▀
▀████▄▄▄▄███▄▄▄▄████▀
▀██████████████████▀
▀███████████████▀
▀▀███████▀▀
.
 MΞTAWIN  THE FIRST WEB3 CASINO   
.
.. PLAY NOW ..
1710843605
Hero Member
*
Offline Offline

Posts: 1710843605

View Profile Personal Message (Offline)

Ignore
1710843605
Reply with quote  #2

1710843605
Report to moderator
1710843605
Hero Member
*
Offline Offline

Posts: 1710843605

View Profile Personal Message (Offline)

Ignore
1710843605
Reply with quote  #2

1710843605
Report to moderator
1710843605
Hero Member
*
Offline Offline

Posts: 1710843605

View Profile Personal Message (Offline)

Ignore
1710843605
Reply with quote  #2

1710843605
Report to moderator
TalkImg was created especially for hosting images on bitcointalk.org: try it next time you want to post an image
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
Possum577
Sr. Member
****
Offline Offline

Activity: 434
Merit: 250

Loose lips sink sigs!


View Profile WWW
January 18, 2015, 06:41:27 PM
 #2

Halving reduces the current growth rate of supply. The fact that it becomes more expensive to mine reduces growth rate of supply. If demand stays the same the reduction in growth of supply will eventually not be able to keep up with demand, thus forcing buyers to bid up the price.

It'll be interesting to see how it plays out.

redsn0w
Legendary
*
Offline Offline

Activity: 1778
Merit: 1042


#Free market


View Profile
January 18, 2015, 06:44:58 PM
 #3

I've been reading posts recently and I've seen many members saying that the price WILL increase because of the block halving. I understand the basics of supply and demand but I cannot determine why will it push the price upwards in bitcoin's case? As more and more coins are being minted, the higher the difficulty will be, and the more miners will quit on mining because it seems to unprofitable. However, that still doesn't help determine the price of bitcoin.

Can anyone help me understand this block halving-price relationship?

One of the post was mine  Cheesy , because less btc "mined" more the value will rise.  We have seen cex.io closed because the price dropped too much , now wait 1 second and think about the question of the halving  | 25 BTC >> 12.5 BTC |

I think the price will (surely) rise  little , if it will not happen I think most farm will stop to mining bitcoin (and obviously the  home mining will stop for ever).

Halving reduces the current growth rate of supply. The fact that it becomes more expensive to mine reduces growth rate of supply. If demand stays the same the reduction in growth of supply will eventually not be able to keep up with demand, thus forcing buyers to bid up the price.

It'll be interesting to see how it plays out.

Yeas I agree with you.
Coinshot
Hero Member
*****
Offline Offline

Activity: 521
Merit: 500


View Profile
January 18, 2015, 08:48:27 PM
 #4

Less new coins = less coins to be sold each day.

I do not think it will have much effect. It will ease the selling pressure by some amount, but market already anticipates that and moves accordingly in advance.


██████████████████████████████████████████████████████████████████████████████████████████████
██████████████████████████████████████████████████████████████████████████████████████
███████████████████████████████████████████████████████████████████████▄▄▄███████████████████████
███████████████████████████████████████████████████████████████████████▀▀▀████████████████████████
██████████████████████████████████████████████████████████████████████████████████████████████████
█████████████████████████████████████████████████████████████████████████████████████████████████



...INTRODUCING WAVES........
...ULTIMATE ASSET/CUSTOM TOKEN BLOCKCHAIN PLATFORM...






Dread Pirate Roberts
Sr. Member
****
Offline Offline

Activity: 1484
Merit: 326


View Profile WWW
January 18, 2015, 09:11:08 PM
 #5

they come to cryptocurrency to believe with bitcoin . i think bitcoin will be always and always amazing
yeah
legendster
Hero Member
*****
Offline Offline

Activity: 1778
Merit: 764


www.V.systems


View Profile
January 18, 2015, 09:52:03 PM
 #6

I've been reading posts recently and I've seen many members saying that the price WILL increase because of the block halving. I understand the basics of supply and demand but I cannot determine why will it push the price upwards in bitcoin's case? As more and more coins are being minted, the higher the difficulty will be, and the more miners will quit on mining because it seems to unprofitable. However, that still doesn't help determine the price of bitcoin.

Can anyone help me understand this block halving-price relationship?

Answered a similar question here : https://bitcointalk.org/index.php?topic=923906.0

Its a lengthy response so only read if you got time.


   ██████████        ████████████
     ██████████        ██████████
       ██████████        ████████
         ██████████        ██████
           ██████████        ████
             ██████████        ██
               ██████████
                 ██████████
                   ████████
                     ██████
                       ████
                        ██
|
     ▄▀▀▀▀▀▀▀▀▀█                 ▄▀▀▀▀▀▀▀▀▀█
 ▄▀                ▄▀█             ▄▀                ▄▀█
 ██████████    █             ██████████    █
 █                █                   █                █    █
 █                █     ▀▀▀▀▀▀▀█                █    █
 █                █  ▄▀             █                █  ▄▀
 ██████████▀                 ██████████▀
          █                                    █
          █                                    █
     ▄▀ █  ▀▀▀▀█                   ▄▀ █ ▀▀▀▀▀▀█
 ▄▀             ▄▀█               ▄▀               ▄▀ █
 █████████   █               ██████████    █
 █              █   █               █                █    █
 █              █   █               █                █    █
 █              █  ▄▀▀▀▀▀▀▀  █                █  ▄▀
 █████████▀                  ██████████▀

Blockchain
Database
                             ▄▄▄
                         ▄▄▀  ▀▄▄
        ▄           ▄▄▀  ▄▀▄  ▀▄▄
      █▄█   █████████████████    █
        █     █                              █ ▄▀ ▌
        █     █        ▄    █   ▄         █▀ ▄▌
       ██    █      ▀▄   █    ▄▀       █▀█
       ▌ ▌   █            █                █  █
       ▌ ▌   █                              █  █
       ██    ███████████████████
                     ▀▀▄  ▀▄▀  ▄▀▀
                         ▀▀▄  ▄▀▀
                             ▀▀▀
Dev friendly
SDK Platform
                             ▄▄▄▄
                         ▄▄█    █▄▄
                     ▄▄█            █▄▄
                 ▄▄█       ▄▄▄       █▄▄
                 █       ▄▀      ▀▄       █
               █▀     █      █      █     ▀█
               ▀▀█  █   ▄█▀█▄   █  █▀▀
               █▀▀   █  ▀███▀  █   ▀▀█
               ▀▀█     █    █    █     █▀▀
                   ▀▀█   █  █  █   █▀▀
                       ▀████████▀
                           █▄▄▄▄█
                 █        █▄▄▄▄█      █
             ▄▀ █▄                   ▄█  ▀▄
            █   █▀▄         ▀      ▄▀█    █
           █   █  █  ▌      ▀   ▐  █  █    █
           █   █▄▀▄▌      ▀   ▐▄▀▄█    █
           █       █          ▀        █       █
        █▀▀▀▀▀▀█                █▀▀▀▀▀▀█
        ▀▀▀▀▀▀▀▀                ▀▀▀▀▀▀▀▀
User-friendly
Token Creation
|
Amph
Legendary
*
Offline Offline

Activity: 3206
Merit: 1069



View Profile
January 18, 2015, 10:00:30 PM
 #7

block halving mean less dumping from big farm, it simple
countryfree
Legendary
*
Offline Offline

Activity: 3038
Merit: 1047

Your country may be your worst enemy


View Profile
January 18, 2015, 10:52:16 PM
 #8

To sum it up, about 4,000 new BTC are created each day, if that goes down to 2,000 a day, it seems logical that the price is going to rise.

Interested in tips for perpetual traveling, nomadic lifestyle, and tax optimization? Subscribe to my Telegram channel.
legendster
Hero Member
*****
Offline Offline

Activity: 1778
Merit: 764


www.V.systems


View Profile
January 18, 2015, 10:56:14 PM
 #9

To sum it up, about 4,000 new BTC are created each day, if that goes down to 2,000 a day, it seems logical that the price is going to rise.


Provided the premined coins from the last blocks dont get dumped due to decrease in profitability.


   ██████████        ████████████
     ██████████        ██████████
       ██████████        ████████
         ██████████        ██████
           ██████████        ████
             ██████████        ██
               ██████████
                 ██████████
                   ████████
                     ██████
                       ████
                        ██
|
     ▄▀▀▀▀▀▀▀▀▀█                 ▄▀▀▀▀▀▀▀▀▀█
 ▄▀                ▄▀█             ▄▀                ▄▀█
 ██████████    █             ██████████    █
 █                █                   █                █    █
 █                █     ▀▀▀▀▀▀▀█                █    █
 █                █  ▄▀             █                █  ▄▀
 ██████████▀                 ██████████▀
          █                                    █
          █                                    █
     ▄▀ █  ▀▀▀▀█                   ▄▀ █ ▀▀▀▀▀▀█
 ▄▀             ▄▀█               ▄▀               ▄▀ █
 █████████   █               ██████████    █
 █              █   █               █                █    █
 █              █   █               █                █    █
 █              █  ▄▀▀▀▀▀▀▀  █                █  ▄▀
 █████████▀                  ██████████▀

Blockchain
Database
                             ▄▄▄
                         ▄▄▀  ▀▄▄
        ▄           ▄▄▀  ▄▀▄  ▀▄▄
      █▄█   █████████████████    █
        █     █                              █ ▄▀ ▌
        █     █        ▄    █   ▄         █▀ ▄▌
       ██    █      ▀▄   █    ▄▀       █▀█
       ▌ ▌   █            █                █  █
       ▌ ▌   █                              █  █
       ██    ███████████████████
                     ▀▀▄  ▀▄▀  ▄▀▀
                         ▀▀▄  ▄▀▀
                             ▀▀▀
Dev friendly
SDK Platform
                             ▄▄▄▄
                         ▄▄█    █▄▄
                     ▄▄█            █▄▄
                 ▄▄█       ▄▄▄       █▄▄
                 █       ▄▀      ▀▄       █
               █▀     █      █      █     ▀█
               ▀▀█  █   ▄█▀█▄   █  █▀▀
               █▀▀   █  ▀███▀  █   ▀▀█
               ▀▀█     █    █    █     █▀▀
                   ▀▀█   █  █  █   █▀▀
                       ▀████████▀
                           █▄▄▄▄█
                 █        █▄▄▄▄█      █
             ▄▀ █▄                   ▄█  ▀▄
            █   █▀▄         ▀      ▄▀█    █
           █   █  █  ▌      ▀   ▐  █  █    █
           █   █▄▀▄▌      ▀   ▐▄▀▄█    █
           █       █          ▀        █       █
        █▀▀▀▀▀▀█                █▀▀▀▀▀▀█
        ▀▀▀▀▀▀▀▀                ▀▀▀▀▀▀▀▀
User-friendly
Token Creation
|
username18333
Sr. Member
****
Offline Offline

Activity: 378
Merit: 250


Knowledge could but approximate existence.


View Profile WWW
January 20, 2015, 07:52:44 AM
 #10

. . .

Nothing should worry you mate , that's how it is the price is basically based on Markets manipulations (exchanges websites) but that dosen't affect a lot of the price , also on Supply & demand .
what you need to know is that the next halving block reward is going to happen in 2016 Q4 or something which means it will give 12.5 BTC instead of 25 BTC so ... Less BTC + demand => more value . I can't tell how it's gonna be in the next months tho . if you see it 180$ or lower just take your cash and start buying Wink
(Red colorization mine.)

Code:
( ∀𝑥 Supply-of(𝑥, Bitcoin) )  ⇒  ( 𝑥 + (25 ÷ 10)(2 ⋅ 365 ⋅ 24 ⋅ 60) < 𝑥 )

Escape the plutocrats’ zanpakutō, Flower in the Mirror, Moon on the Water: brave “the ascent which is rough and steep” (Plato).
odolvlobo
Legendary
*
Offline Offline

Activity: 4256
Merit: 3152



View Profile
January 20, 2015, 08:42:14 AM
 #11

When the demand exceeds the supply, the price rises. If the supply of new coins is cut, then the supply will rise more slowly, making it easier for the demand to exceed the supply (assuming that the demand is rising). Because the supply of new coins is such a small part of the total supply, the effect of the halving is not very significant.

Join an anti-signature campaign: Click ignore on the members of signature campaigns.
PGP Fingerprint: 6B6BC26599EC24EF7E29A405EAF050539D0B2925 Signing address: 13GAVJo8YaAuenj6keiEykwxWUZ7jMoSLt
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!