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Topic: A noob question. - page 2. (Read 3516 times)

legendary
Activity: 3542
Merit: 1352
Cashback 15%
October 25, 2015, 03:59:54 AM
#42
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help.  Huh  Huh

It really depends on the demand. Bitcoin has a decreasing supply and a large demand. If there was a low demand, it'd barely be a hundred dollars.

Uh, decreasing mined coins per day is the only thing that's gonna be reduced by half and not the actual supply. The supply is a static 21 million limit which is predicted to be mined at the year 2140.
legendary
Activity: 3206
Merit: 1069
October 25, 2015, 03:38:34 AM
#41
i think he mean the mining supply, which will be 1800 exactly, thus making it decreased from 3600

within 5 years anyway the impact of new coins will not be so important in any case
legendary
Activity: 4298
Merit: 3209
October 24, 2015, 05:38:12 PM
#40
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help.  Huh  Huh

It really depends on the demand. Bitcoin has a decreasing supply and a large demand. If there was a low demand, it'd barely be a hundred dollars.

The supply of bitcoins is not decreasing. It constantly increasing, currently at the rate of 3600 per day. After the halving next year, it will continue increasing, but at a rate of 1800 per day.

The answer to the original question is that as long as the positive shift in market demand continues to exceed the positive shift in market supply, the price will increase, otherwise it will decrease. Market supply and demand are influenced by many factors including adoption, hoarding, the money supply, the velocity of money, and the price itself.
sr. member
Activity: 280
Merit: 250
Two heads are better than one.
October 24, 2015, 05:23:28 PM
#39
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help.  Huh  Huh

It really depends on the demand. Bitcoin has a decreasing supply and a large demand. If there was a low demand, it'd barely be a hundred dollars.
full member
Activity: 168
Merit: 100
October 23, 2015, 06:15:11 AM
#38
Halving is coming!
http://bitcoinclock.com/

Bitcoin is a bubble, you need to know that. 4 minutes video, youtube

Moreover, there's a lot CloudMining companies want you to investing your money with them. So them can get a lot profit and just giving your capital back in long time.

I'm not confusing about supply and demand in BTC trading, the one thing that i worry about is "Mining Reward".
On next 5 years, miners will get less profit. And because of that too, the transaction fee will increase. And BTC price will drop again.

WTH
full member
Activity: 126
Merit: 100
October 23, 2015, 05:49:44 AM
#37
i dont care if the price will rise or not but we should definitely make a halving party  Cheesy !
Yes. I agree with you.
I don't care about the price of the bitcoin.
sr. member
Activity: 518
Merit: 250
March 16, 2015, 03:00:35 PM
#36
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help.  Huh  Huh

I somehow think that regulations and the stance of governments towards bitcoin will play a huge role here. In my eyes governments of china and usa are still waiting for btc to reach bigger adoption and price and then they will seize big amount of money btc from people. Halving should happen first and if there would not be a huge price decline due to issues of strict and enforced regulations, the price should increase.
But then again - increase from where? Probably from the price near to halving and we dont know what it would be.  Wink
legendary
Activity: 2296
Merit: 1031
March 15, 2015, 11:07:44 PM
#35
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help.  Huh  Huh

If there's one thing certain about bitcoin it's the uncertainty of what the price will be given a myriad of factors.  A lot of people think the price is higher than it should be right now and just as many people think it should be worth a lot more.  So it all depends on how well the current support carries on and how the further development of bitcoin unfolds.  There is "A TON" of infrastructure support already in place for bitcoin which gives it a big advantage over other cryptos and that will likely eventually build stability that is inline with it's structure. 
full member
Activity: 167
Merit: 100
March 15, 2015, 07:37:06 PM
#34
Halving is coming!
http://bitcoinclock.com/
legendary
Activity: 1512
Merit: 1005
March 15, 2015, 06:25:53 PM
#33
Be aware that supply is the coins that current holders have and want to sell for a price, and are brought to the market by offering them in an exchange (for example) or are sold to someone offering to buy. That is, people who wants to reduce their holdings and acts upon that.

The number of coins in existence is not supply in the market sense, it is just that (number of coins in existence), you could also call it total coin volume.
legendary
Activity: 3430
Merit: 1280
English ⬄ Russian Translation Services
March 15, 2015, 07:53:20 AM
#32
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Miners' contribution to bitcoin market price (or rather its fluctuations) through supply of new coins is insignificant at best. Not that it is completely irrelevant, but it is more often than not overridden (with a vengeance) by other factors, many of which are purely speculative ("pump-and-dump" being one of them)...

hero member
Activity: 770
Merit: 509
March 13, 2015, 12:29:35 PM
#31
Did we see much price increase correlated to the last halving? I don't think so. But perhaps that rate (from 50 to 25) still wasn't enough to cause a shortage of supply over demand.

Well if the price didn't increase, I assume that there is not enough demand to account with the then reduced supply. This statement is based on what I've learned so far from this thread. Smiley
Price is not a valid indicator right now, too much confusion and potential big agendas trying to keep it down so they can keep eating cheap coins like hungry whales.
legendary
Activity: 1022
Merit: 1000
March 10, 2015, 03:07:21 PM
#30
Did we see much price increase correlated to the last halving? I don't think so. But perhaps that rate (from 50 to 25) still wasn't enough to cause a shortage of supply over demand.

Well if the price didn't increase, I assume that there is not enough demand to account with the then reduced supply. This statement is based on what I've learned so far from this thread. Smiley

The massive rise and falls in the price of Bitcoin can have a lot to do with large businesses and whales hording Bitcoin and then dropping it all at once for a massive profit. This is plausible and would affect the market in such a way that even if Bitcoin supply were to decrease the demand would stay relatively the same because it is based on an artificial market where the demand is already much less than that of which Bitcoin is being produced. Bitcoin popularity has been rising gradually and it wouldn't make sense for their to be a large jump in price after halving soley because of the "new" demand. I would think that the majority of Bitcoin in circulation right now have already been around for quite awhile.  
legendary
Activity: 3542
Merit: 1352
Cashback 15%
March 10, 2015, 11:02:07 AM
#29
Did we see much price increase correlated to the last halving? I don't think so. But perhaps that rate (from 50 to 25) still wasn't enough to cause a shortage of supply over demand.

Well if the price didn't increase, I assume that there is not enough demand to account with the then reduced supply. This statement is based on what I've learned so far from this thread. Smiley
sr. member
Activity: 434
Merit: 250
Loose lips sink sigs!
March 10, 2015, 10:31:46 AM
#28
Did we see much price increase correlated to the last halving? I don't think so. But perhaps that rate (from 50 to 25) still wasn't enough to cause a shortage of supply over demand.
Q7
sr. member
Activity: 448
Merit: 250
March 10, 2015, 09:28:46 AM
#27
Well the halving means reduction in bitcoin supply by 50 percent and if the demand maintains the same as per current rate, theoretically we should see the price moving up. However like what you ask per the scenario basis, if lets say demand slows down a bit dropping by only 10 percent, overall we should still see the price going up.
newbie
Activity: 1
Merit: 0
March 10, 2015, 07:41:51 AM
#26
The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help.  Huh  Huh

Near??? still 72 weeks away, a lifetime in bitcoin time
http://bitcoinclock.com/



thank you for the link!
legendary
Activity: 4298
Merit: 3209
March 10, 2015, 03:26:40 AM
#25
Usually mining reward decrease has no effect on the price.

Currently there are 3600 new coins every day, just in the last 24 hours bitcoin trade volume is above 150,000 coins, 3600 coins if immediately dumped by miners has no effect on price.
Where did you get the BTC150k figure? From here I see the volume is about $2-7 million (~15k or 20k BTC) per day on most days, with exceptions.
Reducing the daily reward from BTC3,600 to BTC1,800 would definitely have an effect.
Of course that's just a factor as I said before.
There's definitely something wrong with their numbers. Typical daily USD volume is actually in the neighborhood of $15-20 million.

Bitfinex alone reports 70k BTC volume per day, which is about $20 million. The blockchain.info numbers (15k - 20k BTC) cannot be the total of all exchanges.

But, the point I really wanted to make is that the supply is not just the number of new bitcoins because bitcoins are not consumed.

Also, remember that supply and demand are not simple numbers. They are functions in which the quantity depends on the price (or vice versa).
hero member
Activity: 560
Merit: 500
March 10, 2015, 01:50:30 AM
#24
Usually mining reward decrease has no effect on the price.

Currently there are 3600 new coins every day, just in the last 24 hours bitcoin trade volume is above 150,000 coins, 3600 coins if immediately dumped by miners has no effect on price.

Where did you get the BTC150k figure? From here I see the volume is about $2-7 million (~15k or 20k BTC) per day on most days, with exceptions.

Reducing the daily reward from BTC3,600 to BTC1,800 would definitely have an effect.
Of course that's just a factor as I said before.



There's definitely something wrong with their numbers. Typical daily USD volume is actually in the neighborhood of $15-20 million.
full member
Activity: 255
Merit: 100
March 09, 2015, 07:42:09 PM
#23
Usually mining reward decrease has no effect on the price.

Currently there are 3600 new coins every day, just in the last 24 hours bitcoin trade volume is above 150,000 coins, 3600 coins if immediately dumped by miners has no effect on price.

Where did you get the BTC150k figure? From here I see the volume is about $2-7 million (~15k or 20k BTC) per day on most days, with exceptions.

Reducing the daily reward from BTC3,600 to BTC1,800 would definitely have an effect.
Of course that's just a factor as I said before.

Here: https://bitcoinaverage.com/#USD

At winkdex.com shows 88k+ and it doesn't even count Chinese exchanges.
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