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
, 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.