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Topic: Is the halving a catalyst for a Bitcoin price bubble? (Read 539 times)

hero member
Activity: 1092
Merit: 501
in theory halving is a 50% reduction in reward from mining results. and mining is increasingly difficult. by looking at economic theory. that every scarcity of goods will make prices go up. so that possibility also applies with bitcoin. the more difficult bitcoin is to mine and get. then the price will go up. I hope the bubble will occur again in 2020 after halving.
The halving is only going to affect the future rewards and not the number of coins that already exist, what is decreasing is not the supply of bitcoin but the rate at which bitcoin is created, as time passes bitcoin halvings are going to be less influential as we are getting closer to the maximum supply, so what we need in order to drive the price of bitcoin up is demand which is precisely what we are lacking and that I do not know if we are going to get enough of it during 2020 to see that bubble coming again to the market.
hero member
Activity: 1694
Merit: 502
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in theory halving is a 50% reduction in reward from mining results.

It's not theory, it's a fact. This is not the first halving, we had one 2012, then 2016 and next year we will have Bitcoin halving again. It's a 50% reduction for the miners and every time halving was the catalyst for the market to rise. Bitcoin will rise, and Bitcoin will pull some altcoins too, it's happened before, and it will happen again.
hero member
Activity: 2968
Merit: 687
in theory halving is a 50% reduction in reward from mining results. and mining is increasingly difficult. by looking at economic theory. that every scarcity of goods will make prices go up. so that possibility also applies with bitcoin. the more difficult bitcoin is to mine and get. then the price will go up. I hope the bubble will occur again in 2020 after halving.
We dont need a bubble which i would much prefer if we would able to see an organic gradual growth in price yet we've known on what would happen to see a bubble like movement when it tends to pop out.

Its better to have slow pace rise but well neither way, price of btc is always been volatile it can jump up and dumped down in a short span of time.Halving event to be a catalyst? Theres no brainer for that.
hero member
Activity: 1008
Merit: 510
We all know that the supply of bitcoin is capped at 21 million and all these halving are predetermined event which everyone actually expected and I can't see this could drive the price up somehow. But, it could indeed become a catalyst aswell as a method to spread out news regarding bitcoin and giving impression that bitcoin is becoming scarce which could probably indirectly affect the whole market perception regarding the current market trend but that's it and nothing more, forget about bubble because it's not going to happen anytime soon but, just my opinion tho.

I guess my perspective is that the reason for the price increase after a halving is more due to the mining difficulty and scarcity. You may be right about the bubble but it’s not just Bitcoin that experiences bubbles. All markets have them at some point.
legendary
Activity: 1316
Merit: 1145
in theory halving is a 50% reduction in reward from mining results. and mining is increasingly difficult. by looking at economic theory. that every scarcity of goods will make prices go up. so that possibility also applies with bitcoin. the more difficult bitcoin is to mine and get. then the price will go up. I hope the bubble will occur again in 2020 after halving.
legendary
Activity: 3010
Merit: 1028
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We all know that the supply of bitcoin is capped at 21 million and all these halving are predetermined event which everyone actually expected and I can't see this could drive the price up somehow. But, it could indeed become a catalyst aswell as a method to spread out news regarding bitcoin and giving impression that bitcoin is becoming scarce which could probably indirectly affect the whole market perception regarding the current market trend but that's it and nothing more, forget about bubble because it's not going to happen anytime soon but, just my opinion tho.
legendary
Activity: 3808
Merit: 1723
I am pretty sure that the BTC miners are more hodl'er than miners who mine coins such as ETH. Most BTC miners are probably large corps that can have periods of drawdown and they are able to hold their coins and wait for a bull market to sell. If they were in the business for years they got good capital to pay for electricity costs and what-not. So even though the daily miner reward for BTC is something like $12 million, I am sure most of those aren't instantely dumped on the market.

The ETH market is different. Its more home oritented miners who are still paying off their GPUs and need to pay for their electricity. So I am assuming that there are many miners who just sell at market price without hodling because they can't wait for the market conditions to improve. As long as they sell at a profit I guess they don't really care.

So who knows if the BTC halving will have a huge effect on price, price is already magnitudes higher than the previous 2 halvings.
hero member
Activity: 1092
Merit: 501
I'm thinking maybe the decrease that we are seeing right now is due to the halving that is coming. After the halving there will still be another decrease and that's for sure, but the question is when will the bull run be, is it going to be after the halving or before the halving?

I have seen a lot of price predictions by experts, some of them claimed that there will be an increase this year and this year is coming to an end and the price is still down to $7000 plus and still showing signs of decreasing. Halving is still far though, around May 2020, so does that mean there is a chance that bull run will take place before the halving? Maybe the price will go up and after the halving it will go down again. Best thing is just to keep on holding, if you can.
While we all know that the market doesn't behave in the exact same way, during the last halving the price did not go up immediately, it took months for the price to begin to go up and it took more than one year to see the bull market that everyone was expecting and now that there is a bearish sentiment it is possible that the price will keep going down during the next months and that the halving is only going to stop that tendency only for one year later the bull market could appear.
legendary
Activity: 3304
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I don’t call it a bubble. Bubbles pop & don’t inflate again. After each halving supply is lessened & the price goes up as a result. It’s a natural increase in price with a high top & then a correction.

Bitcoin has never been a bubble.
hero member
Activity: 2548
Merit: 605
I'm thinking maybe the decrease that we are seeing right now is due to the halving that is coming. After the halving there will still be another decrease and that's for sure, but the question is when will the bull run be, is it going to be after the halving or before the halving?

I have seen a lot of price predictions by experts, some of them claimed that there will be an increase this year and this year is coming to an end and the price is still down to $7000 plus and still showing signs of decreasing. Halving is still far though, around May 2020, so does that mean there is a chance that bull run will take place before the halving? Maybe the price will go up and after the halving it will go down again. Best thing is just to keep on holding, if you can.
hero member
Activity: 2632
Merit: 787
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I actually don't think that a bubble will form as a result of the halving this time round.

It's much more likely that this time, a more graduated and mild run up will occur when come halving time, because of the fact that the sentiment within the market is still extremely bearish and that will take time to reverse.

So to your question, is it a catalyst for a bubble? Not necessarily. Is it a catalyst for a bull run? absolutely.

You may be correct but either way we know that cutting the mining reward in half has to have some kind of affect. It’s just interesting that the bubbles/crashes historically seem to happen every 4 years.
It is clear that there is a market cycle in this market that happens every four years and it is very difficult to ignore that the halving also happens every four years, however the market is not as predictable if it was then everyone will earn money in the markets and we know that is not true, so I am expecting that the next halving is going to be slightly different, most likely what we are going to see is that the market is not going to move much for months, people will get desperate and will sell their coins and that is when the price will go up.

Any speculation regarding to that matter is not accurate but we can ride the fact that there something good will be happen once the halving effect will be occur and base to those histories it shows that  we can get a positive insights on what will happen on future so maybe the best thing to do for now is to follow the market trend updates and see if we can see a good things in the presence of that season.

And for sure everyone will sell there hodl coins at that time since there are many people bagholds and wait for the opportunity to come up with there losses for the pass bear market streak.
hero member
Activity: 1092
Merit: 501
I actually don't think that a bubble will form as a result of the halving this time round.

It's much more likely that this time, a more graduated and mild run up will occur when come halving time, because of the fact that the sentiment within the market is still extremely bearish and that will take time to reverse.

So to your question, is it a catalyst for a bubble? Not necessarily. Is it a catalyst for a bull run? absolutely.

You may be correct but either way we know that cutting the mining reward in half has to have some kind of affect. It’s just interesting that the bubbles/crashes historically seem to happen every 4 years.
It is clear that there is a market cycle in this market that happens every four years and it is very difficult to ignore that the halving also happens every four years, however the market is not as predictable if it was then everyone will earn money in the markets and we know that is not true, so I am expecting that the next halving is going to be slightly different, most likely what we are going to see is that the market is not going to move much for months, people will get desperate and will sell their coins and that is when the price will go up.
hero member
Activity: 1008
Merit: 510
I actually don't think that a bubble will form as a result of the halving this time round.

It's much more likely that this time, a more graduated and mild run up will occur when come halving time, because of the fact that the sentiment within the market is still extremely bearish and that will take time to reverse.

So to your question, is it a catalyst for a bubble? Not necessarily. Is it a catalyst for a bull run? absolutely.

You may be correct but either way we know that cutting the mining reward in half has to have some kind of affect. It’s just interesting that the bubbles/crashes historically seem to happen every 4 years.
legendary
Activity: 3234
Merit: 1214
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Personally I don't believe that price bubble will happen after halving or that halving will bring some bigger changes in the market. Many expect to see big price pump but I don't think this will happen. Price will not rise fast and in bigger range, I expect more moderate prise rise.
Price bubble or the large scale growth will happen without doubt, but when this will happen is the question. With the past halving the growth got initiated months later to halving. The growth that took after months is very big, and to the days close to halving there is growth which is the beginning for a much higher price same as that we experienced with the 2017 market growth. Moderate price increase will continue to be the same as now, but the halving truly creates some value rise through its demand to limited availability. Even here manipulation happens, but that won't cause a big impact over the market.
legendary
Activity: 2912
Merit: 1068
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Personally I don't believe that price bubble will happen after halving or that halving will bring some bigger changes in the market. Many expect to see big price pump but I don't think this will happen. Price will not rise fast and in bigger range, I expect more moderate prise rise.
sr. member
Activity: 2030
Merit: 269
My question “Is the halving a catalyst for a Bitcoin price bubble?” is based on my observation that the halving happens every 4 years and a Bitcoin price bubble seems to also happen every 4 years.

Halving of 2016: 7/9/16
Price bubble was around mid Dec 2017 (about 17 months after halving)

Halving of 2012: 11/28/12
Price bubble was around late Nov 2013 (about 12 months after halving)

Any correlation? Is it possible that the halving starts a price increase that grows exponentially over the course of a year to a year and a half until the bubble pops?  If so, should we expect the same thing to happen after the halving of 2020?

Please share your thoughts

So far all the past halving did not disappoint us, we have arrive at the best price in 2017 and we are still in a good price as of this writing, we are better, than 7 years ago, this 2020 halving will bring good results in the price because only 900 Bitcoin will be mined after this half of what is mining today until 2024, if we are good after the 2016 we re going to be better 2010 onwards.
25/05/2020 ---- May 2024 ----- 6.25 Btc for block ------- 900 Btc every day
copper member
Activity: 40
Merit: 2
Look at the graph of halving and at the graph of price on the same timeframes, it will become even more obvious that they do have a connection.
sr. member
Activity: 504
Merit: 250
I actually don't think that a bubble will form as a result of the halving this time round.

It's much more likely that this time, a more graduated and mild run up will occur when come halving time, because of the fact that the sentiment within the market is still extremely bearish and that will take time to reverse.

So to your question, is it a catalyst for a bubble? Not necessarily. Is it a catalyst for a bull run? absolutely.
legendary
Activity: 2464
Merit: 1039
Bitcoin Trader
My question “Is the halving a catalyst for a Bitcoin price bubble?” is based on my observation that the halving happens every 4 years and a Bitcoin price bubble seems to also happen every 4 years.

Halving of 2016: 7/9/16
Price bubble was around mid Dec 2017 (about 17 months after halving)

Halving of 2012: 11/28/12
Price bubble was around late Nov 2013 (about 12 months after halving)

Any correlation? Is it possible that the halving starts a price increase that grows exponentially over the course of a year to a year and a half until the bubble pops?  If so, should we expect the same thing to happen after the halving of 2020?

Please share your thoughts
this is exactly what i said and analyzed here, the incident has happened a second time, we all think and hope it will happen for the third time, since 2014 the price of bitcoin is destroyed i have no hope and will not believe that it will again grow, it turns out what I'm afraid all of that happened again bubbles came in 2017, like dejavu
sorry I repeat the words below

2012 - Bitcoin halving
2013 - go to the moon
2014 - hacking problem from MTGOX and others
2015 - Bitcoin prices wake up from the downturn
2016 - Bitcoin halving
2017 - go to the moon
2018 - the bitcoin problem is usually about HACK
2019 - Bitcoin prices wake up from the downturn
2020 - Bitcoin halving
2021 - try asking your grandma? Grin
As expected Bitcoin halving will take more time before it could start to fuel the fire for the next bull run. So this just means that this year and the next year will have a reasonable price for investors to sell if there is an increase. Bitcoin halving is just beyond to our expectations already since it will not going to make a change in the market yet in 2020.
no need to worry about saturating prices right now, ATH will happen so fast that it will make many people see and be surprised, bitcoin halving happens in the near future around 2020 and it is a time where everyone waits for the historical moment to be repeated, the next bull will come soon  Wink
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
If the price will bubble again and reach 20k level then expect a dump from people who bought at ATH.
If you are hoping to see another 20k rise then stock up on bitcoin at this stage to be ready to sell at that level. But doubts are there about such rise because in 2017 there were a number of reasons why the market rose like that, the BTC forking, the tether manipulation which fueled the price to rise a lot.

These things are not happening twice so probability of a huge pump is low.

Imagine mining reward as a cost to run Bitcoin. When cost halve then yes value of Bitcoin is to increase. It is simple as that. 
Things dont always go as per the dictum. What about the miners who are more interested in the slow selling of bitcoins to balance their ROI and keep a bigger stash in lockup for future selling?
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