Since the halving is fast approaching, I think most of the things that surround Bitcoin is the topic Halving. For sure, there are a lot of articles already for newbies to read but it's not wrong to clarify things, especially in Bitcointalk.
As we know the situation with cryptocurrency, the fast-moving market makes it hard for people to see the importance of having it at a discount because it's not going to get any better than that. It's always going to be hesitation at the current market but future regret for not buying it, and it's sad. For us, it's easy to invest some of the hard-earned money that we make since we support it, but for new-comers, it's going to be quite hard.
The current happenings around us would certainly heal,. Still, right now, no one can predict when it's going to be finished, the pandemic situation, just like the prediction of what the price would be on investment, in this case, Bitcoin, after the halving.
BTC is not going to disappear, that's for sure.
Topic: Bitcoin in time of halving - a brief review. - page 2. (Read 381 times)
because as we know in the past few days the price of BTC has increased by about $2500 (from $7000 -> $9500), and some started talking about the new big bull run and new ATH even this year. I still think it's just about recovery that is follow after 11/12 March sharp decline and declaration of world pandemic, and that the real effects will be felt only after a few months or only next year.
I have the same thing in mind. This is why I've said a decent number of times here on Bitcointalk that I think we're going to get a drop in price in the short term after the halving, as there's a significant number of people counting on a price pump after the halving for some reason. If a pump in price doesn't happen, I'm guessing that some of those disappointed people will be selling. But then again, it's just my guess. It's also possible that a FOMO chain will happen; like a domino effect, depending on how much publicity and hype the halving event will get.
There are quite a few principal considerations to be made with regards to halving.
The extent as to which the supply is affected would be very much related to the amount of Bitcoins that the miners are currently releasing into the market. Given the relatively low labour cost and electrical cost in China, I doubt the miners are releasing a significant amount of Bitcoins into the market and that the halving would result in a significant reduction in supply. There's obviously no way to tell as there can't be a sufficient sample size to see what the miners are doing.
The demand for Bitcoin is varying a lot nowadays. Given the current climate, the price increase is very likely due to people cashing into Bitcoin as the economy weakens around the world and that those who cashed out during the Covid pandemic are slowly shifting the funds back into their various investments together with the speculation prior to the halving.
IMO, the halving wouldn't be the main factor influencing Bitcoin's value and there would be a myriad of factors surrounding the price. It isn't a sound investment advice to buy into Bitcoin solely based on the fact that there's a halving but it would require the investor doing his due diligence before committing a reasonable risks to the investment.
* Of course I'm not a qualified economist but it's just a representation of my thoughts.
The extent as to which the supply is affected would be very much related to the amount of Bitcoins that the miners are currently releasing into the market. Given the relatively low labour cost and electrical cost in China, I doubt the miners are releasing a significant amount of Bitcoins into the market and that the halving would result in a significant reduction in supply. There's obviously no way to tell as there can't be a sufficient sample size to see what the miners are doing.
The demand for Bitcoin is varying a lot nowadays. Given the current climate, the price increase is very likely due to people cashing into Bitcoin as the economy weakens around the world and that those who cashed out during the Covid pandemic are slowly shifting the funds back into their various investments together with the speculation prior to the halving.
IMO, the halving wouldn't be the main factor influencing Bitcoin's value and there would be a myriad of factors surrounding the price. It isn't a sound investment advice to buy into Bitcoin solely based on the fact that there's a halving but it would require the investor doing his due diligence before committing a reasonable risks to the investment.
* Of course I'm not a qualified economist but it's just a representation of my thoughts.
With regard to the main topic these days (BTC halving 2020), and the many questions posed by beginners, (but also some who have been in the forum for a long time) I don't think it would be a bad thing to break some myths and clarify things.
BTC Halving is an event which happens about every 4 years, or to be more precise every 210 000 mined blocks. We have had two such events so far (2012&2016), and each time reward (mined BTC per block) decreased by half from 50BTC to current 12.5 BTC, and in next 10+ days that reward will be 6.25 BTC per block. This would simply mean that in the next 4 years the number of new mined BTC will go down from 1800 per day to 900 per day.
Why is halving so interesting to anyone involved in any way with Bitcoin? The reason is very simple, everything is really in the numbers I cited above, and the bottom line is that it would reduce the amount of new BTC while increasing or holding current demand could lead to an increase in price. That's exactly what happened in the previous two halvings, so most are reasonably hoping the same will happen a third time.
Let's try to look at the current situation now, because as we know in the past few days the price of BTC has increased by about $2500 (from $7000 -> $9500), and some started talking about the new big bull run and new ATH even this year. I still think it's just about recovery that is follow after 11/12 March sharp decline and declaration of world pandemic, and that the real effects will be felt only after a few months or only next year.
For all those who are wondering what is the smartest thing to do now, we can say that it is never too late to invest, but also that it is not a bad time to sell if you are making a profit. What is wrong in my opinion (although I understand it from a short-term investment perspective), is waiting for moments like this to invest. Someone said long ago "the time to buy is when there's blood in the streets.", which some did and have almost doubled their investment.
Almost identical discussions took place before the last halving, and I think the same will be in 4 years, which leads us to the conclusion that BTC will not disappear as some predicted, and they do the same today.
Local Rule : Anyone post which will include whole OP quoted (first is an exception) will be deleted.
BTC Halving is an event which happens about every 4 years, or to be more precise every 210 000 mined blocks. We have had two such events so far (2012&2016), and each time reward (mined BTC per block) decreased by half from 50BTC to current 12.5 BTC, and in next 10+ days that reward will be 6.25 BTC per block. This would simply mean that in the next 4 years the number of new mined BTC will go down from 1800 per day to 900 per day.
Why is halving so interesting to anyone involved in any way with Bitcoin? The reason is very simple, everything is really in the numbers I cited above, and the bottom line is that it would reduce the amount of new BTC while increasing or holding current demand could lead to an increase in price. That's exactly what happened in the previous two halvings, so most are reasonably hoping the same will happen a third time.
Let's try to look at the current situation now, because as we know in the past few days the price of BTC has increased by about $2500 (from $7000 -> $9500), and some started talking about the new big bull run and new ATH even this year. I still think it's just about recovery that is follow after 11/12 March sharp decline and declaration of world pandemic, and that the real effects will be felt only after a few months or only next year.
For all those who are wondering what is the smartest thing to do now, we can say that it is never too late to invest, but also that it is not a bad time to sell if you are making a profit. What is wrong in my opinion (although I understand it from a short-term investment perspective), is waiting for moments like this to invest. Someone said long ago "the time to buy is when there's blood in the streets.", which some did and have almost doubled their investment.
Almost identical discussions took place before the last halving, and I think the same will be in 4 years, which leads us to the conclusion that BTC will not disappear as some predicted, and they do the same today.
Local Rule : Anyone post which will include whole OP quoted (first is an exception) will be deleted.
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