Does halving really create deflation? - page 3.

Triffin

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Quote from: piebeyb on November 30, 2019, 05:49:51 AM

Quote from: dragon695 on November 27, 2019, 04:04:12 AM

hey guys, i'm quite serious on this topic because of the confusing people when talking about Bitcoin "deflation". As far as I understand, the deflation is that goods are cheaper than they are on time or because there is no need to buy goods or the supply of money gets lower.
So for Bitcoin, why is there a deflation? Although I know that miners will find it harder to mine bitcoins after every Halving event, the value of our goods stays the same and is based on fiat money. Bitcoin's price is still being manipulated and it is not necessarily a strong growth after halving. or the best example is Litecoin. after halving, its price is halved instead of rising higher.
So, the question is, does the Halving event actually cause deflation, or is it just some bullshit theory?
Ps: I highly appreciate the comments with sincere contributions. Thanks

when bitcoin halving, bitcoin miner income will decrease, for example, miners a month get 1000 BTC every month, but if bitcoin halving certainly revenue from mining will be reduced by half for example a month to 500 BTC, if the price goes down the miner will feel loss because the value is cheap and while the buyer demand bitcoin is very high, most other investors are HODL, so what do you think if the value is low, does that make sense? soon 2020

The miners get some reward for mining and it is somewhere equal to 12 bitcoin at the moment. Once the blocks in bitcoin chain become 210,000 halving is programmed into the system which decreases the mining reward. The miners that now have bitcoin can definitely sell out bitcoin according to their values and this community increases the values of bitcoin for buyers. This is why halving increases bitcoin worth.

wack slacker

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Deflation depends on users' needs and maybe a 50% reduction in rewards can create greater demand. I have faith in the next round of rewards reduction of Bitcoin mining. Because in previous years Bitcoin did the same thing as continuous increase in value after halving. But looking at the Litecoin Halving event that took place, I got a different perspective. Litecoin miners have dropped, they are moving to other more profitable crypto mining. The value of Litecoin is now decreasing compared to before Halving. So maybe Bitcoin will have the same fate as Litecoin.

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Quote from: dragon695 on November 27, 2019, 04:04:12 AM

hey guys, i'm quite serious on this topic because of the confusing people when talking about Bitcoin "deflation". As far as I understand, the deflation is that goods are cheaper than they are on time or because there is no need to buy goods or the supply of money gets lower.
So for Bitcoin, why is there a deflation? Although I know that miners will find it harder to mine bitcoins after every Halving event, the value of our goods stays the same and is based on fiat money. Bitcoin's price is still being manipulated and it is not necessarily a strong growth after halving. or the best example is Litecoin. after halving, its price is halved instead of rising higher.
So, the question is, does the Halving event actually cause deflation, or is it just some bullshit theory?
Ps: I highly appreciate the comments with sincere contributions. Thanks

I don't think it actually creates deflation. Here, deflation is the appearance of negative interest rates or our money can buy more goods than last year. halving will make the value of Bitcoin grow and it can buy more goods but we still cannot say that it is a deflationary mechanism. we should say it is a reduction in inflation. means that there is still inflation happening but Halving will reduce the inflation level and balance it.

Linkkoin

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Quote from: 7788bitcoin on December 03, 2019, 09:22:15 AM

Historically the price of bitcoin starts to increase well after halving and to reach the rally frenzy it will take over an year, we have experienced those in the past and we expect the same in the future too but you cannot call the current market situation in a bear trap, the market was stable for a while and if the market is not having the strength to move higher usually it will have a shake up and that is what we saw in the past few weeks.

Each new BTC price cycle is longer than a previous one, and this time we have as well rather bearish factor called FATF guidelines.

7788bitcoin

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Quote from: karanggatak on December 01, 2019, 08:46:31 PM

indeed not all coins can experience an increase as mentioned op. but if we look at the history of bitcoin, one year after halving bitcoin will pump.
hopefully bitcoin next year will be like that. we have been in the bear market for a long time, hopefully next year we will start entering the bull market.

Historically the price of bitcoin starts to increase well after halving and to reach the rally frenzy it will take over an year, we have experienced those in the past and we expect the same in the future too but you cannot call the current market situation in a bear trap, the market was stable for a while and if the market is not having the strength to move higher usually it will have a shake up and that is what we saw in the past few weeks.

supercanada1

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Quote from: veleten on December 01, 2019, 07:24:25 AM

in short - halving is the main mechanism to create deflation , yes
in bitcoin ecosystem this event has very big impact on both the hashrate and the price of bitcoin
and usually , the price is not peaking before or during the halving , but its increasing eventually a couple of months afterwards
the not efficient and smaller miners will have to stop their miners and cease operations , thus cutting the flood of the coins to the market
since they have to sell fast , unlike big companies who could wait for the price they need
while this , in theory , leads to more centralization of the mining , it serves its purpose of the deflatory mechanism perfectly

Bitcoin from the very beginning was deflationary in nature due to its limited number of 21 millions that can not be increased. If we look at the main cause of problems like inflation and hyperinflation, these happen when the amount of the currencies is increased largely but this is impossible with digital coins. Halving has more to do with keeping a balance and not giving all the bitcoin to miners as their reward.

karanggatak

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deflation means the amount of money circulating decreases. when bitcoin halves the amount of bitcoin mined will decrease. but the demand for bitcoin remains or increases, this is what can make the price of bitcoin increase.
indeed not all coins can experience an increase as mentioned op. but if we look at the history of bitcoin, one year after halving bitcoin will pump.
hopefully bitcoin next year will be like that. we have been in the bear market for a long time, hopefully next year we will start entering the bull market.

jjigoku

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Quote from: X-ray on December 01, 2019, 06:23:56 PM

The bearish market also contribute whether the halving could affect the market or not. people always believe that halving could bring double profit but that's not actually true. if the market is at good condition it could probably make the price double but otherwise when the market is bearish it will do nothing. atleast thats what i experienced from so many halving ive been through and its not something that we should put our hope in.

That is what I was thinking about. Crypto market is still a market and rules (partly) by peoples interest.Not the way they want it to be, but according to their behaviour/willing to buy or sell/actions.
So halving basically is just another line of news in the feed of users (not that simple actually, but you got the point)

X-ray

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Quote from: uray on December 01, 2019, 12:38:02 PM

Quote from: Karmakid on November 29, 2019, 08:19:42 PM

The effect of the next halving would probably be the same like the previous one. People witnessed the effect of last halving to the price of bitcoin and just like what happened in litecoin, the price increases because the people are so hyped up about the halving and it would be the same to bitcoin, people are now into bitcoin because all they want is fast money. Greediness will become the fuel for bitcoin to spike up and have a parabolic move again.

The litecoin halving happened recently and nothing happened as of yet and i am not expecting the price of litecoin to rally alone and people who are investing in any market is not looking for the novelty of the market and all they expect is to earn the profits through smart decisions and if people see the bitcoin market as the fastest way to earn profit then who can complaint that Wink

.

The bearish market also contribute whether the halving could affect the market or not. people always believe that halving could bring double profit but that's not actually true. if the market is at good condition it could probably make the price double but otherwise when the market is bearish it will do nothing. atleast thats what i experienced from so many halving ive been through and its not something that we should put our hope in.

tenakha

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Quote from: dragon695 on November 27, 2019, 04:04:12 AM

So, the question is, does the Halving event actually cause deflation, or is it just some bullshit theory?

Nothing to be overrated, each theory is bullshit unless we consider it as a major innovation. Such news appeal to the community and when we see it as a high grade innovation, we buy and price rises. Halving is also an innovation like this, and when that happens, it will be more difficult to mine BTC, and looks that will be enough for market to be affected.

uray

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Quote from: Karmakid on November 29, 2019, 08:19:42 PM

The effect of the next halving would probably be the same like the previous one. People witnessed the effect of last halving to the price of bitcoin and just like what happened in litecoin, the price increases because the people are so hyped up about the halving and it would be the same to bitcoin, people are now into bitcoin because all they want is fast money. Greediness will become the fuel for bitcoin to spike up and have a parabolic move again.

The litecoin halving happened recently and nothing happened as of yet and i am not expecting the price of litecoin to rally alone and people who are investing in any market is not looking for the novelty of the market and all they expect is to earn the profits through smart decisions and if people see the bitcoin market as the fastest way to earn profit then who can complaint that Wink

.

veleten

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in short - halving is the main mechanism to create deflation , yes
in bitcoin ecosystem this event has very big impact on both the hashrate and the price of bitcoin
and usually , the price is not peaking before or during the halving , but its increasing eventually a couple of months afterwards
the not efficient and smaller miners will have to stop their miners and cease operations , thus cutting the flood of the coins to the market
since they have to sell fast , unlike big companies who could wait for the price they need
while this , in theory , leads to more centralization of the mining , it serves its purpose of the deflatory mechanism perfectly

Sadlife

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In the later years it has been that way when it's the time of halving the mining rewards gets reduce and Bitcoin's price starts to sky rocket probably because investors where reminded how limited the supply of bitcoins every halving we see a pump in the price.
Now this years halving serve as to delay the generation of bitcoin with its 2million plus supply left in circulation. Its just new to see that current btc halving doesn't have any big move either to the upside or the downside.

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In a way this is a trick question, we all know there will be just 21 million Bitcoin, what people don't understand about Bitcoin is part where it can have more decimals. If miners agree on that one day, they can do that. Theoretically, Bitcoin can be modified, modification can lead to inflation or deflation, or to be made to be suitable for mass usage. All that depends on miner's decisions, and all others who help the network somehow, cause before everything that's decentralized network, all of them need to agree before they do anything.

Darooghe

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In my opinion the definition of inflation with respect to a particular currency is that it will buy fewer goods and services over time. Deflation is the reverse. so you will be able to buy more in the future. there's no way to say that a particular currency is deflationary by definition, it all depends on what people will sell you for a particular unit. but the idea that BTC is deflationary because the supply of bitcoin is limited and there will only ever be 21 million bitcoins in existence. It has nothing to do with halvening event.

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Quote from: Xxmodded on November 30, 2019, 02:01:21 PM

Few months later for bitcoin halving but still not looks good for bitcoin and altcoin have higher price, will be next bitcoin halving can't make bitcoin and altcoin back to higher price again? we are excited waiting bitcoin halving but looks with bitcoin and altcoin price still down, maybe after reached one months later for bitcoin halving give higher price impact for bitcoin and altcoin.

Halving is just the reducing of block reward and nothing more, there's no guarantee that the price will go up after halving and all these people saying that the halving will significantly increase the price is just a speculation. Last year it doesn't give significant change to the price of bitcoin and even unique the price has pumped far before halving and when halving just occured the price already back to normal. people are just too optimistic in this matter I guess.

rose9696

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No, I don't think halving can cause deflation. I also see most people talk about deflation of bitcoin every 4 years but I feel this is not true. Bitcoin's price has not grown with every halving event and it is constantly fluctuating. maybe it returned $ 3k. so this may be a false conclusion and the halving event only creates supply scarcity and only makes the price of bitcoin increase, done.

blckhawk

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First of all, Bitcoin is naturally a deflationary currency since the start. Given the fact that it has limited supply, time would come that when supply is maxed out and demand keeps increasing, its value would increase, and with higher price, makes its purchasing power higher (opposite of inflation imposed by government on fiat by producing more money/supply).

Now for the halving, slower supply generation with assumption of steady Bitcoin demand, would short the supply and create the same effect (deflation). That's why halving is associated with uptrend of prices. Also to mention that the sudden half supply generation is quite a large percentage in one blow (50%).

Xxmodded

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Quote from: dragon695 on November 27, 2019, 04:04:12 AM

hey guys, i'm quite serious on this topic because of the confusing people when talking about Bitcoin "deflation". As far as I understand, the deflation is that goods are cheaper than they are on time or because there is no need to buy goods or the supply of money gets lower.
So for Bitcoin, why is there a deflation? Although I know that miners will find it harder to mine bitcoins after every Halving event, the value of our goods stays the same and is based on fiat money. Bitcoin's price is still being manipulated and it is not necessarily a strong growth after halving. or the best example is Litecoin. after halving, its price is halved instead of rising higher.
So, the question is, does the Halving event actually cause deflation, or is it just some bullshit theory?
Ps: I highly appreciate the comments with sincere contributions. Thanks

Few months later for bitcoin halving but still not looks good for bitcoin and altcoin have higher price, will be next bitcoin halving can't make bitcoin and altcoin back to higher price again? we are excited waiting bitcoin halving but looks with bitcoin and altcoin price still down, maybe after reached one months later for bitcoin halving give higher price impact for bitcoin and altcoin.

ampu

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The deflation really makes sense as miners continue to mine bitcoin and bitcoin continues to increase in value. If one day bitcoin is no longer mined and the value of bitcoin drops, then Bitcoin is nothing more. The real value of deflation must come from demand. Litecoin is an example, the amount of hashrate has decreased since the last deflation. The value of Litecoin has dropped. Not always deflation increases the value of that asset.

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