Bitcoin price will be deflated!!! by block halving!!!!! - page 3.

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Quote from: silverleafy on September 25, 2015, 11:01:24 PM

It would be odd if the price would drop considerably or stay about the same some time after the halving (say... 10 months afterwards). I think that the article is flawed in saying that the expected rise in price is because of reduction in the circulating bitcoin. That is wrong. Right now, there is a production of bitcoin, some part of which needs to be sold off to pay for mining cost (electricity bills cant really be paid in bitcoin). They have to sell, and that sale pressure holds the price down somewhat. Once the production of bitcoin goes down, that sale pressure will be less, because they'll have only half the available bitcoin to sell for the cost of mining. Those producing bitcoin will have to sell at about double the price if they want the same profit (assuming the cost of mining doesn't really go up). The only way is up after the halving. Maybe not immediately, but I'm pretty sure the price will double (from what the price will be at about the halving), in about a year after the halving.

They will have to sell. Since their earnings will be twice as less (without any economic reason behind) while they still have to pay the same bills, they will have to sell more. Most likely, much more, thereby emptying their stashes. I don't see how the price could double in these circumstances...

So, I'm afraid, the sell pressure may actually increase

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Quote from: Amph on September 26, 2015, 02:03:12 AM

Quote from: BitcoinNewsMagazine on September 25, 2015, 10:56:20 PM

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

besides on the current demand, it will increase at 100%, just not skyrocket

but it won't remain at the same exact prie as it is right now, this is simple math, less dumping = more value unless someone think that miners, right now, are not dumping at all...

Seeing the price get a 100% increase from today to Juli 2016 isn't that unrealistic. Less minted Bitcoins will do the demand incredibly good. The only question is for how long? I hope we won't fall back to the $250-$299's after the halving as that would be extremely sad. Dumping the price to the ground takes less than a day, but regaining everything cost plenty of months as we've seen.

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Quote from: BitcoinNewsMagazine on September 25, 2015, 10:56:20 PM

No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

besides on the current demand, it will increase at 100%, just not skyrocket

but it won't remain at the same exact price as it is right now, this is simple math, less dumping = more value unless someone think that miners, right now, are not dumping at all...

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Quote from: chennan on September 25, 2015, 11:02:26 PM

Quote from: aakashsangwan on September 25, 2015, 10:50:21 PM

Quote from: chennan on September 25, 2015, 10:46:01 PM

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

Yes supply will never be short as bitcoins will always be mined and the bitcoins will always increase in number.
To increase their prices we should use them in our daily lives and not just hodl them, by hodling bitcoins we will never se their prices sky rocketed.

I see your point, but there are actually other sides of the argument that makes sense too. Take for example, if some wealthy person took all the money out from their banks (lets say 1 million $) and stored it into a safe for safe keeping, this wouldn't necessarily mean that the dollar would lose it's value because someone with a lot of money hoarded away their money.

It's a very complicated issue, with multiple theories of what could or couldn't be right; but in actuality there is no set scheme in economics that if "A" happens, this is going to cause "B" to happen... this regards to bitcoin and bitcoin prices as well... It will definitely be interesting though to see how this all plays out in the long run though.

I see your point. But as in your example $ is the most widely used currency, so everyone is using it so it has value and a person holding it will not matter that much.
But Bitcoin is child as compared to $ and it's user base is also very small.

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Quote from: aakashsangwan on September 25, 2015, 10:50:21 PM

Quote from: chennan on September 25, 2015, 10:46:01 PM

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

Yes supply will never be short as bitcoins will always be mined and the bitcoins will always increase in number.
To increase their prices we should use them in our daily lives and not just hodl them, by hodling bitcoins we will never se their prices sky rocketed.

I see your point, but there are actually other sides of the argument that makes sense too. Take for example, if some wealthy person took all the money out from their banks (lets say 1 million $) and stored it into a safe for safe keeping, this wouldn't necessarily mean that the dollar would lose it's value because someone with a lot of money hoarded away their money.

It's a very complicated issue, with multiple theories of what could or couldn't be right; but in actuality there is no set scheme in economics that if "A" happens, this is going to cause "B" to happen... this regards to bitcoin and bitcoin prices as well... It will definitely be interesting though to see how this all plays out in the long run though.

silverleafy

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It would be odd if the price would drop considerably or stay about the same some time after the halving (say... 10 months afterwards). I think that the article is flawed in saying that the expected rise in price is because of reduction in the circulating bitcoin. That is wrong. Right now, there is a production of bitcoin, some part of which needs to be sold off to pay for mining cost (electricity bills cant really be paid in bitcoin). They have to sell, and that sale pressure holds the price down somewhat. Once the production of bitcoin goes down, that sale pressure will be less, because they'll have only half the available bitcoin to sell for the cost of mining. Those producing bitcoin will have to sell at about double the price if they want the same profit (assuming the cost of mining doesn't really go up). The only way is up after the halving. Maybe not immediately, but I'm pretty sure the price will double (from what the price will be at about the halving), in about a year after the halving.

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No one knows how bitcoin price will react to block reward halving best not to make plans on hope.

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Quote from: chennan on September 25, 2015, 10:46:01 PM

I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

Yes supply will never be short as bitcoins will always be mined and the bitcoins will always increase in number.
To increase their prices we should use them in our daily lives and not just hodl them, by hodling bitcoins we will never se their prices sky rocketed.

chennan

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Activity: 1316

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I don't think he was trying to say that it is inevitable for bitcoin's price to be deflated because of the halving... He's just saying that bitcoins price won't necessarily sky rocket like some people think that it will due to a shortage of supply... all in all though that was a pretty good article, thanks for sharing.

aakashsangwan

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I found this article and it is so much convincing, check it out

http://insidebitcoins.com/news/the-bitcoin-halving-deflating-the-hype/35014

Topic: Bitcoin price will be deflated!!! by block halving!!!!! - page 3. (Read 2709 times)