Topic: What exactly is bitcoin halving? - page 3. (Read 3294 times)

Even better than an expensive Bitcoin is the price of energy wasted, miners who want to keep mining would need to find different methods or energy resources: solar, wind, even the controversial free energy. That's when the world will start to evolve.

So they're going to foot the bill for the price rise that saves them? That doesn't make a whole lot of economic sense. The price ain't gonna rise just because a group of people need it to.

I am looking at the recent litecoin halving for most of my guesses, spike prior and a fluctuation and a settle.

because what you suggest could have already happened, since it has nothing to do with the halving, but we are struggling to even maintain the lowest value

Finally an explanation for halving, I was asking about the same question LOL.

I guess if miners get half the reward, many would cease to mine also, which also will get the price up, and then they will start to mine again which will bring the price down? or I am making a mess?

All the miners and anyone else in bitcoin's own personal infrastructure is far too invested in bitcoin so when the halving happens 50% of people cant just pull out so the price goes up without fail.  Watch it happen.

And a fair few have had the shit kicked out of them since the bubble. Perhaps the present crop are more cautious and are content to actually, like, use it rather than bet the house. It's gonna be a fascinating thing to watch.

That's true. It is also a different user demographic and mindset. I don't know what's going to happen. 

Why not? He meant that upcoming halving will have a zero effect on the price just prior and after the halving. This doesn't mean that Bitcoin will dissappear. We might as well have some game changing things that would propel us to the moon happening 6 months after the halving.

This would mean that the halving had zero effect on the current Bitcoin price but we still went up and haven't died as you suggested.

It's quite simple. If everything stays the same but supply decreases, the price will rise.. or at least drop at a slower rate.

Every 10 minutes the latest bitcoin transactions between bitcoin addresses
enter the blockchain to become permanent on the history of bitcoin transactions.
All miners are trying to guess the solution to a puzzle that will allow the first one to solve it to insert the next block (basically, a list of transactions with a header) into the chain. The lucky miner that was able to guess the solution is rewarded.
In the first fours years, the reward was 50 BTC. So 50 BTC would be added to the number of BTC in circulation, every 10 minutes. Note that these bitcoins weren't "associated" with any bitcoin address. So they didn't exist! They come into existence from the infinite number of bitcoins that only exist in a potential form but never came into existence and become actual.
It is as if an infinite number of bitcoins already exist and will ever do; but will never become real.
From that infinite potential/void only 21 million will be allowed to enter circulation, in the limit.
And every four years the miners reward - that they will get if they win the mining "lottery" - is halved. So right now it is 25 BTC. Next halving 12.5 BTC. In the next 6.25 BTC... and so and so forth. Till the sum of all rewards that ever happened approaches the limit of 21 million.

The limit of 21 million bitcoins is hard coded in the distributed software implementation with a schedule and results from the accumulation of 50 bitcoins reward each ten minutes during the first four years(50x6x24x365x4=10 512 000), plus, half, 25 bitcoins reward each ten minutes during the following four years (5256 000+10 512 000= 15 768 000), plus, half, 12.5 bitcoins reward each ten minutes during the following four years (2 628 000+5 256 000+10 512 000=18 396 000)... and so on and so forth, till the reward of the four years before is so that it doesn't add nothing to the total of "almost" 21 million, more precisely: 20999999.97690000 BTC.

This protocol implementation results from a few lines of code in the distributed software, and everyone would have to agree to change it otherwise incompatibility would arise to anyone trying to change that.

There weren't nearly as many users and companies involved in bitcoin during the last halving.

No certainties. Pretty simple, I must say: if demand stays the same or increase, value will increase; if demand decrease and supply decrease, price will go down. Also in the second scenario, miners that won't profit in these terms would likely leave the scene for a while or leave completely.

well it can't keep on remaining on zero for every halving, otherwise we know what will happen to the miners industry

basically it's like saying that bitcoin will die by 2020...

At the first halving there were 10.5 million BTC and the subsidy went from 50 to 25

At the next halving there will be 15.75 million BTC and the subsidy will go from 25 to 12.5

So since the monetary base will be larger and the drop in daily production is smaller the effect of this next halving should be less than the effect of the first halving.

As was stated, after all the wringing of hands and euphoria around the last halving the net effect was about zero.

I expect that after all the "end of the world" hand wringing and the "price will double" euphoric expectation the net effect of the next halving will also be about zero.

I think after we see a lot of investments from wall street and companies putting money into the bitcoin ecosystem and the halvening I think we will finish 2016 about ~400$.

The last halving was a non-event. Speculation was that the reduction was factored in months before the block reward drop.

Now there goes my bubbles of hope that bitcoin will reach a higher price after the halving. I've thought about all the stuffs I read on the speculation board and guess everyone is hoping for the same.

Why should it? If the halving destroyed half the previous mined coins then a price rise makes sense. There's just a modest percentage less arriving every day. That makes no difference if there isn't a decent amount of demand. The halving and what someone on an exchange is willing to buy or sell for aren't very closely related. There are plenty of BTC users who probably don't even know what it means.

Definitely no guarantees.  It's more optimism than anything else.  I suspect quite a few people expecting a sudden launch to the moon are going to be disappointed.  I think at best there will be a slight uptick.  Certainly nothing major (although I'll welcome being wrong on that one    ).