Topic: 3 interesting tips about Bitcoin halving (Read 312 times)

Right. The halving seems like a smart move. If all bitcoins were up for grabs too quickly, it might flood the market and drop the value. By making it harder to mine, it keeps things scarce and in demand. Miners benefit too because they could rake in more profits by holding onto their bitcoins as they become more valuable. Smart strategy, even if it's not spelled out in the white paper.

How can it be less important when it's one of the most anticipated event in bitcoin's history? Of course, there is still the fundamentals, but BTC is more of like a store of value as you have said, and with that every halving, every wait every 4 years, BTC becoming scarce pushing the price higher.

As to the interesting facts that the OP put, yes, thanks. But I do not think the investors are really into that. I mean we don't want things to be complicated in our end, so we just wait when will be the halving and what will be our new all time high as the end of this activity.

I think Satoshi must have had perfect idea as to why they are implementing the halving process. They did not do it intentionally they did it with perfect vision. If all the bitcoins were supposed to get mined easily within few years of timeline then the demand and supply would have been gone wild. I mean we would have got lot of Bitcoin (supply) but less demand because it is easily available. The rational? Well to value the Bitcoin more and more with the time. In exactly similar fashion as Gold is doing today. They applied perfect analogy to increase the mining difficulty as it would make Bitcoin more scarce and more demanding. Even if it is not clearly written within white paper I still believe they must have got clear idea about this theory back of their mind. In addition, miners doesnt lose anything, they could actually make nice profits as the Bitcoin becomes more valuable due to high demand and scarce supply. (If they hodl)

The Bitcoin halving is an event that occurs approximately every four years, reducing the number of new coins that are earned by miners. This process is designed to counteract inflation and has historically led to significant price appreciation, making it a pivotal moment for investors seeking potential gains.Here are some tips and strategies for investors interested in the Bitcoin halving:


-Understand the Impact: The halving can trigger extreme price moves and initiate long-term price trends, so it's important to consider the increased price volatility and factor this into your risk management strategy

-Accumulate at Favorable Rates: Many investors and HODLers try to accumulate BTC at favorable rates before the halving event to avoid market volatility

-Diversify Your Portfolio: Consider diversifying your cryptocurrency portfolio to reduce risk, as the halving may create price volatility, and other cryptocurrencies may perform differently during this period

-Consult with Experts: If you are relatively new to investing in Bitcoin, it's advisable to seek professional help from financial advisors or experts with experience in the crypto market to make more informed choices

-Stay Informed and Secure: Stay informed about market dynamics, study price patterns, and implement security measures to reduce the risks associated with holding and transacting Bitcoin, ensuring that your investments remain safe and secure, even during the heightened activity surrounding Bitcoin halving events

By understanding the impact, staying informed, and implementing prudent strategies, investors can potentially navigate the Bitcoin halving with confidence and reap the rewards of this dynamic event
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This is a merit to bitcoin but 60% of people that chase after profits because of the hype don't understand what bitcoin halving is and the impact to the bitcoin. They probably heard from friends that bitcoin price usually triple or more in every halving and then gather money from where they can only to buy bitcoin at the top and start crying later if the market under goes a correction after the halving because from the look of bitcoin chart, in every pump, there must come a correction.

What amused me about this new people is that when the bitcoin price drop that they should have bought it and risk money from friends and family that wouldn't ask them soon, they would rather watch till it bottom, make a reversal and when it has pumped or start the pump they rush back to buy only for Bitcoin to make another correction and then they panic to sell at loss or hold at another loss that will take another market circle to recover, chasing bitcoin price is never a good move.

Thank you, OP for this, though already known, but still, it is educative and will teach those who didn't know before now. Permit me to talk about Satoshi's remarks as to not knowing the reason why he planned the halving and believing that one while paper would still be written. Well, I do not expect any white paper, and who knows if it would be an imposter to whom the white paper is written about? It has happened before that many claimed they are Satoshi, but for ordinary signing, they failed. We can't guarantee that such will not happen even as the white paper might be compromised.

But for the reason why halving was planned by him, I believe it is not far-fetched, it is simply for the visioned demand and supply economics to the advantage of Bitcoin. That is for it to make the coin more valuable and continue to appreciate in value even as the miners have the opportunity to gain more for their participating efforts' rewards over time.

Miners' halving preparation. This is a crypto industry strategic shift, not a tactical one. Miners decide the network's future. They must prove their mettle, inventiveness, and dedication during the halving.

Pre-programmed halvings reveal Bitcoin's governance. This is a big change from reactive, subjective financial policy. The protocol-based approach of Bitcoin gives it determinism and impartiality that's rare in monetary systems. Not only code, this is a statement declaring independence from economic manipulation.

Comparing Bitcoin to gold is a modern conception of value. Bitcoin challenges the concept of a "store of value". This is a philosophical as well as technological breakthrough.

Halving are becoming less and less important. What will drive BTC more and more is adoption and store of value against inflation.

Supply can not be changed, and it helps Bitcoin is solid than smart contract altcoins with mint function to dump any new supply if developers want.

How is the 21 million bitcoin cap defined and enforced?

Halving is used like seeding for Bitcoin every four years and attract considerable new people, investors join this market with their money. They are new in this market and their money brings in is new capital flow for this market. It helps price to increase with same supply, higher demand, more capital is ready to buy up the price.

The best thing about bitcoin halving is it attracted great numbers of investors which made the price of bitcoin rise and create new ATH every time we reach this event, we are witnessing history and it's really nice to be one of those people who were willing to wait until the price increase to the point it will gonna shake the whole world because after that others will have clear view about their assumptions with bitcoins and they will gonna invest rather than listen to those critics and FUDS that has been polluting the crypto industry for years without any evidences.

Is it not because he wanted for bitcoin’s supply to be well circulated?

By halving, it is avoiding inflation the supply is cut into half but the demand remains the same resulting in higher prices it is basically controlling or maintaining the scarcity of bitcoin because of halving itself, bitcoin is compared more to gold than traditional money

We don't know the exact reason of halving, but it seems to be a great and simple way to introduce a way of slowing down the pace at which new coins enter the circulating supply, and making the process fully autonomous (no centralized authority is required to control the supply).
Cycles also give people a feeling of something being completed, give motivation and things to look forward to in the new cycle. Perhaps it's because of how we're used to living. We have days as cycles of Earth's rotation around its own axis, years as rotations around the Sun, so cycles are just something we are very used to. Many look forward to halvings, anticipating an increase of BTC price afterwards, and miners can try to make the most out of the rewards before they get reduced.

By the way, we don’t know exactly why Satoshi chose a 4-year period for the interval between halvings. Perhaps there is some rational reason for choosing an even number greater than two for this interval. The 4-year period coincides with the intervals between presidential elections in many countries, particularly the United States. Indeed, there are electoral cycles in the behavior of assets, for example, in the stock market. There are also 4-year astrological cycles. But we can say that 4 years is a long enough period to prepare for the next halving of the subsidy for the mined block of Bitcoin.

what makes me interested about halving is that I think at that time halving was the news that had the most positive influence on bitcoin, we can't increase the price of bitcoin with small positive things like investment from companies or regulations, but if it's about halving I think everyone agrees This is a form of Bitcoin's positive trend every few years. but I am very curious if bitcoin is completely mined will the halving also end. So what's interesting next?

Maybe Bitcoin can be considered digital gold, but of course it's still very different from real gold, and all crypto enthusiasts know this. Also, with the upcoming bitcoin halving, I still believe that there will still be rewards for the miners.

I'm not sure if the bitcoin fee will increase after the bitcoin halving. Is that possible? because if it was just now or recently, there was a crisis in the bitcoin fee, especially after the Halving, right?

Well, this is not tips, but much more like what you understand about mining and halving event.

Unpopular opinion: halving is actually has no relation with bull run, but many people think due to Bitcoin become scarcer, it makes Bitcoin price increase.

That's true, but he indirectly stated it was for reward to miners. IIRC someone was saying halving happens every four years was due to math.

At least for now bitcoin and gold supply have different characteristics. Since bitcoin has been created, the supply is meant to be 21 million. Which means after the whole 21 million BTC has been mined, there will no more be new BTC that would be introduced into the calculation. But check this about gold:

Major gold deposits discovered in Uganda

On June 7 2022, approximately 31 million metric tonnes of gold was declared by their president to have been discovered in the country. There are many of this kind of news that a country will discover gold or more gold deposit. Which means the supply are increasing.

These are the gold on the land surface. There are still gold in the earth crust and beneath the ocean but which modern day technology can not mine. Also there are gold deposit outside the earth on other planets. Also can be asteroids that consist of gold. Example is Psyche 16. We do not know how advance the world would be in some centuries to this time and we can not just conclude that gold deposit is limited.

As far as what I've read is concerned joining a mining pool is probably more efficient than mining solo especially if you have limited resources and your devices aren't the best ones that can produce competitive hash rates.

I guess Satoshi gradually reducing mining rewards is also imitating gold mining's characteristic. The more gold mined, the longer miners are extracting the mineral, the more people mining gold, the lesser the supply becomes and the lower the amount mined for miners. The supply is dwindling. It's logical for the output of mining to also decrease.

Bitcoin halving, in addition to the increase in demand, is what makes the price change in this sharp manner, as every 4 years we witness an increase in the price of Bitcoin, which greatly enhances adoption. Therefore, halving may represent one of the reasons for making Bitcoin grow and spread, but over time, its effect will be, and then, if not supply. Significantly, the price will be stable or begin to decline, or at best not be affected by the 4-year cycles. Then, what pushes the industry forward is decentralization.

Some detailed tables about flippenings. We are still in a last flippening time between a curve and a flat area of the Bitcoin supply curve. When the flat area is touched, people will discuss like Will it be the end of Bitcoin because Bitcoin miners will receive less coins from mining. I read those discussions many times and similar topics like will Bitcoin die after 2140 when all 21 million bitcoins in total supply already mined by miners.

It's too far but if Bitcoin adoption continues to be bigger, Bitcoin price will be higher and miners will have more money from transaction fees like we see since 2023 February with Ordinals spam on Bitcoin network. I think it will not be matter of miners if block rewards halve and halve.

Controlled supply
Equivalent Network Time