What exactly is bitcoin halving? - page 4.

kingcolex

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Quote from: jacee on October 21, 2015, 01:31:00 PM

Quote from: gentlemand on October 21, 2015, 01:25:58 PM

Some people think that the subsequent reduction in supply will drive up the price. I don't really buy that. There's already enough coins out there to meet demand and of the coins traded every day, the volume is multiple times more than the mined coins arriving. If demand rose significantly then it might be a factor but outside sentiment, which is more important than anything so it does count, I don't think there's any other reason for it to rise.

I understand the supply and demand thing. So what you mean is that the price increase after the halving does not have a solid proof that it will really increase at all? Huh

No there is no true way to know that it will increase, just theories that it will.

gentlemand

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Welt Am Draht

Quote from: chennan on October 21, 2015, 01:29:43 PM

Yep, pretty much this. The fact that bitcoins will be "more scarce" to the miners and exchange sites, that will make bitcoin more valuable; assuming that the demand for bitcoins will remain the same.

Consider the Californian Gold Rush for example... when (actual) miners started out, they were finding tons of gold and selling them to make a living. Since then, the price of gold is a lot more than what the miners of those times were selling their gold for.

But it's just less dilution and inflation. Nothing's more scarce. There's just as many coins as there were before and plenty are always up for sale. If we completely discount China, 24 hour trading volume was around 80,000 BTC. Not that I believe mined coins hit exchanges all that often anyway, but the halving is only 1800 coins less per day.

jacee

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Quote from: gentlemand on October 21, 2015, 01:25:58 PM

Some people think that the subsequent reduction in supply will drive up the price. I don't really buy that. There's already enough coins out there to meet demand and of the coins traded every day, the volume is multiple times more than the mined coins arriving. If demand rose significantly then it might be a factor but outside sentiment, which is more important than anything so it does count, I don't think there's any other reason for it to rise.

I understand the supply and demand thing. So what you mean is that the price increase after the halving does not have a solid proof that it will really increase at all? Huh

kingcolex

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Quote from: gentlemand on October 21, 2015, 01:25:58 PM

Some people think that the subsequent reduction in supply will drive up the price. I don't really buy that. There's already enough coins out there to meet demand and of the coins traded every day, the volume is multiple times more than the mined coins arriving. If demand rose significantly then it might be a factor but outside sentiment, which is more important than anything so it does count, I don't think there's any other reason for it to rise.

Well the recent Litecoin halving brought up the price from 1.50 - ~$3, it fluctuated like mad but it definitely grew around the halvening.

chennan

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Quote from: ronald98 on October 21, 2015, 01:20:56 PM

It's when the number of coins the miners get for mining each block gets reduced by half. Today they get 25 Bitcoins for mining each block, and there's about 6 blocks mined per hour. During next summer the number of coins they get for each block gets reduced to 12 and a half.

Miners have to pay electricity bills that mining runs up so they frequently sell their mined Bitcoins and that brings the price of Bitcoin down. When the number of coins they get for mining gets reduced by half next summer they will only have half as many coins to sell as they do now. That should help the Bitcoin price rise because there will be less pressure pushing it down from miners selling.

Yep, pretty much this. The fact that bitcoins will be "more scarce" to the miners and exchange sites, that will make bitcoin more valuable; assuming that the demand for bitcoins will remain the same.

Consider the Californian Gold Rush for example... when (actual) miners started out, they were finding tons of gold and selling them to make a living. Since then, the price of gold is a lot more than what the miners of those times were selling their gold for.

jacee

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Quote from: ronald98 on October 21, 2015, 01:20:56 PM

It's when the number of coins the miners get for mining each block gets reduced by half. Today they get 25 Bitcoins for mining each block, and there's about 6 blocks mined per hour. During next summer the number of coins they get for each block gets reduced to 12 and a half.

Miners have to pay electricity bills that mining runs up so they frequently sell their mined Bitcoins and that brings the price of Bitcoin down. When the number of coins they get for mining gets reduced by half next summer they will only have half as many coins to sell as they do now. That should help the Bitcoin price rise because there will be less pressure pushing it down from miners selling.

I see, this answers my question clearly. So basically it's the miners keeping their coins in them and not selling them because they only get half of the original coins that they are getting now after the 2nd halving?
So if these miners still wants to sell their coins, then no price increase will happen to bitcoin? Huh

gentlemand

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Welt Am Draht

Some people think that the subsequent reduction in supply will drive up the price. I don't really buy that. There's already enough coins out there to meet demand and of the coins traded every day, the volume is multiple times more than the mined coins arriving. If demand rose significantly then it might be a factor but outside sentiment, which is more important than anything so it does count, I don't think there's any other reason for it to rise.

Mikestang

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The halving refers to the reward for solving a block. Satoshi outlined in his white paper how the supply of bitcoin would be controlled, that the reward for solving a block would be cut in half every 210,000 blocks, roughly every 4 years. The reward started at 50btc and is currently 25btc, it will go down to 12.5btc at some point in 2016.

Lots to read from a basic google search, https://www.google.com/search?q=bitcoin+halving

BurtW

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All paid signature campaigns should be banned.

BTW the current estimate as to exactly when the miner reward will go from 25 to 12.5 BTC per block is:

Reward-Drop ETA: 2016-07-25 22:11:50 UTC (39 weeks, 5 days, 9 hours, 50 minutes)

ronald98

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It's when the number of coins the miners get for mining each block gets reduced by half. Today they get 25 Bitcoins for mining each block, and there's about 6 blocks mined per hour. During next summer the number of coins they get for each block gets reduced to 12 and a half.

Miners have to pay electricity bills that mining runs up so they frequently sell their mined Bitcoins and that brings the price of Bitcoin down. When the number of coins they get for mining gets reduced by half next summer they will only have half as many coins to sell as they do now. That should help the Bitcoin price rise because there will be less pressure pushing it down from miners selling.

BurtW

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For the first four years that Bitcoin existed miners were paid 50 Bitcoins per block. Then after those four years the amount paid to the Bitcoin miners was cut in half to 25 Bitcoins per block. This was the so called "first halving" now after the second four years the amount paid to the miner is scheduled to be cut in half again, this time to 12.5 Bitcoins per block. This is the second "halving". By design the amount paid to the Bitcoin miners will be cut in half about every four years until the year 2140.

jacee

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So in the speculation board I see posts that says bitcoin price will go up ince the halving occurs. What halving is really? How does it affects the price of bitcoin? Kindly please explain as I don't have any idea what these are. Cheesy

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