Satoshi forces the price of bitcoin to continue to rise over time - page 2.

Synchronice

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

Honestly, that's a very good question and your answer makes sense but the % of bitcoins that was mined in the first years is so much that it doesn't make sense for me.

Quote from: mk4 on April 12, 2024, 06:55:23 AM

It's to slow down the supply distribution/inflation; the price increase is only a byproduct due to the decreased new supply.

And I don't know if you actually think that (though I think it's likely just language barrier), but saying "forces" is not the right word to use in this case lol.

If it's done to slow down the supply distribution or inflation, then why was 75% of all bitcoins mined in the first four years. In the next four years, 16.5% got mined, then 7% got mined, then 3.3%. Does this make sense? It wasn't done for that purpose because most of the coins were mined way early and only the tiniest percentage will be mined in the next hundred year.

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The way I see it, Satoshi didn't possess some special power to control prices like magic. Basic economics says if something gets more scarce but people still want it, value should go up and that's how halvings reduce new bitcoin entering the market - lower supply, potentially higher demand. But don't go thinking every halving guarantees a price jump either. Markets are complicated things with lots going on at once to push prices all over the place. The past dont determine the future.

Ruttoshi

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Satoshi never planned for the future of bitcoin to reach this price, but he knows that it might be possible or not. This is because Satoshi himself said that in 20 yrs time bitcoin price might reach a high amount or turn to zero. I am sorry I cannot find this quote here. So as you can see it is just his good work that brought bitcoin price to this amount.

The halving only help to trigger the bull run, because the law of demand and supply is what controls the price of bitcoin, and when people see the price of bitcoin shooting up, due to limited supply after the halving they buy because they don't want to miss out, believing that the price will keep pumping.

Zaguru12

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

This is just like saying bitcoin price is been set by Satoshi which you know is completely wrong, if the prices are pre determined before now we might have found a way around to know about it. Saying halving period increases bitcoin price isn’t correct because the price effect is actually influenced by the demand and supply of it. It is only when any of this happens that the price reacts not because the supply is cut into half. The reason it is most likely on halving periods is simply because people look at bitcoin during this period and think that it’s reduction will cause scarcity so the surge for its demand is what drives the bull run.

I wouldn’t say that the price will increase after every halving since the three occasions we have had isn’t a yard stick that it can be that every time but I will say as things are now and how people FOMO during halving periods I see the price always growing higher each of the halving periods

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Quote from: davis196 on April 12, 2024, 06:09:48 AM

Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

I don't think that Satoshi was obsessed with the Bitcoin price back in 2009-2010, when one BTC was worth less than a dollar.
The whole idea was to create a deflationary currency, instead of an inflationary currency.
The demand is what determines the price of an asset or product. The price of Bitcoin would be zero, if the demand for BTC was zero.
The fixed supply doesn't change this. You could create an altcoin with fixed supply, but the price of this altcoin will be zero(or close to zero) because of the extremely low(or non-existent) demand for that particular altcoin on the crypto markets.

You have a point there. I bet you that many investors are not paying attention to this, most of the time what I see people talking about is that the supply of bitcoin is fixed and that is why the price of bitcoin is increasing. This is not completely wrong but it is also not right because as you said, creating a currency with a limited supply has never been too difficult and any altcoin can do it, not just bitcoin. The most important thing to create the value of bitcoin must be demand because the higher the demand, the more the value increase. That's why I believe that even if we have 21 million bitcoins in circulation, the price of bitcoin will continue to rise because the demand is so great.

PhillipDe78

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It is true that halving bitcoin could potentially increase the deficit and raise the price if demand remains high. However, the price of bitcoin is influenced by other factors besides halving, including market demand, investor sentiment and global economic conditions. The future price of bitcoin remains uncertain and subject to various influences. In addition, some of the "experts" believe that bitcoin will collapse heavily... Undecided

Plaguedeath

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It's funny you're saying Satoshi force the Bitcoin price when no one even know who exactly is Satoshi, who're him and is he still live or not etc.

The recent ATH was $73.637, now Bitcoin price is $70K, the difference is just $3K, I'm 100% sure Bitcoin will make new ATH after the halving. What people are expect isn't Bitcoin will make new ATH, but how much it will? many people set a target $100K, some people $150K.

Even Bitcoin price is dump, it won't really affect miners because mining aren't the only one their income sources, some of them sell mining rigs.

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

That's not exactly correct though. Just look at altcoins. A large number of them follow the same model as Bitcoin (limited supply + block reward reduced by a certain % on fixed intervals) and they don't always go up.

The truth is that bitcoin price goes up because it is a combination of supply AND demand, not just the supply. In other words the adoption has to grow in order to help the price continue going up. In that process, the rate of new supply being created cut by 50% helps that rise due to adoption.

Quote

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners.

I disagree.
Even though there are always "weak hands" who bought bitcoin thinking they can get rich over night who would then sell if their silly targets aren't reached, but the majority of people aren't like that. They don't buy bitcoin to get rich quick. They either have long term perspective or they are seeking financial sovereignty which means they are not concerned with whether halving leads to hyped up temporary rallies or not.

Alone055

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time.

There is no forcing in it, the halving, in general, has nothing to do with the price of Bitcoin, it is just that the Bitcoins that come in circulation will reduce after it, and the reason why its price goes up after each halving is that people buy more of it thinking that the price will go up, so it goes up because of that.

Quote from: simons_js on April 12, 2024, 05:00:57 AM

this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs.

There is absolutely no guarantee for that to happen. We think that Bitcoin will have a new all-time high after each cycle but this is just based on what we have seen in the history of Bitcoin, things can be different in the future, maybe Bitcoin will reach a price point and then drop after it and doesn't manage to go above that point next time.

Doan9269

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time.

I may not agree with the word forces because bitcoin is a volatile digital cryptocurrency and its not something that is centralized whereby a single entity can decide on whether to increase or decrease the market price or value, he has done his own part and leave the network being sustainable to how we adopt, buy or sell in respect to its demands and supply.

Quote from: simons_js on April 12, 2024, 05:00:57 AM

The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

What a nice discovery then, are you now investing or just against the whole process with bitcoin and mining rewards.

Quote from: simons_js on April 12, 2024, 05:00:57 AM

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners.

How sure are you that bitcoin is not going to reach a new all time high after halving, do you have any proof.

mk4

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It's to slow down the supply distribution/inflation; the price increase is only a byproduct due to the decreased new supply.

And I don't know if you actually think that (though I think it's likely just language barrier), but saying "forces" is not the right word to use in this case lol.

simons_js

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Quote from: Odohu on April 12, 2024, 05:14:30 AM

Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

It is wrong to use the word force for it and I somehow disagree with you on this. The right way to put it is that Bitcoin was designed in a way that the supply will continue to decrease even in the face of increasing demand thereby creating a kind of imbalance that will spur an increase in price. This is not the same as forcing people to buy Bitcoin but a simple economics.

Whether you agree or not, this design was planned by Satoshi. The results would be different if the rewards for miners were not cut using the halving method.

Yes, bitcoin is not about a simple economic concept but a complex and planned concept. If bitcoin does not have a good algorithm system and development plan then I am sure bitcoin will not be trusted by the community. Halving is one of satoshi's great ideas, a method that indirectly forces the price of bitcoin to continue to rise over time.

Quote from: btc78 on April 12, 2024, 05:16:16 AM

Quote from: simons_js on April 12, 2024, 05:00:57 AM

This is a smart strategy that Satoshi had and I just realized it.

Is it?

Because halving was implemented so that bitcoin can fight against inflation. By maintaining a fixed supply of bitcoin, the currency has lower chances of losing its value. I don’t personally think that this was what Satoshi had in mind but because of the reducing supply, the price of bitcoin gets higher and higher.

I think this will continue at least until the next halving.

The conditions would be different if Bitcoin did not use the halving method. You can imagine if the reward remains 50 btc/block like early stage bitcoin. I suspect that even if the number of bitcoins remained the same, the price would not be as high as it is now. That's the great thing about the halving strategy designed by Satoshi

Quote from: davis196 on April 12, 2024, 06:09:48 AM

Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

I don't think that Satoshi was obsessed with the Bitcoin price back in 2009-2010, when one BTC was worth less than a dollar.
The whole idea was to create a deflationary currency, instead of an inflationary currency.
The demand is what determines the price of an asset or product. The price of Bitcoin would be zero, if the demand for BTC was zero.
The fixed supply doesn't change this. You could create an altcoin with fixed supply, but the price of this altcoin will be zero(or close to zero) because of the extremely low(or non-existent) demand for that particular altcoin on the crypto markets.

Sorry, I don't understand the direction of your writing

Blitzboy

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The halving process, its a genius move. Pure economics - you cut supply, demand stays the same, the price goes up. Every cycle proves it, the numbers dont lie. Bitcoin keeps hitting new highs, best crypto on the market, period. Investors should see this, its the best opportunity out there.

Now, some worry about miners, about trust. Look, the market adjusts, it always has. Bitcoin's shown incredible strength. We're not just talking about hope here, we're talking about a proven pattern, years of data. This isn't just me being positive, its logic. This isnt just me being arrogant, its fact. Bitcoin's future, trust me, its looking incredibly bright.

davis196

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

I don't think that Satoshi was obsessed with the Bitcoin price back in 2009-2010, when one BTC was worth less than a dollar.
The whole idea was to create a deflationary currency, instead of an inflationary currency.
The demand is what determines the price of an asset or product. The price of Bitcoin would be zero, if the demand for BTC was zero.
The fixed supply doesn't change this. You could create an altcoin with fixed supply, but the price of this altcoin will be zero(or close to zero) because of the extremely low(or non-existent) demand for that particular altcoin on the crypto markets.

btc78

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

This is a smart strategy that Satoshi had and I just realized it.

Is it?

Because halving was implemented so that bitcoin can fight against inflation. By maintaining a fixed supply of bitcoin, the currency has lower chances of losing its value. I don’t personally think that this was what Satoshi had in mind but because of the reducing supply, the price of bitcoin gets higher and higher.

I think this will continue at least until the next halving.

Odohu

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Quote from: simons_js on April 12, 2024, 05:00:57 AM

Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

It is wrong to use the word force for it and I somehow disagree with you on this. The right way to put it is that Bitcoin was designed in a way that the supply will continue to decrease even in the face of increasing demand thereby creating a kind of imbalance that will spur an increase in price. This is not the same as forcing people to buy Bitcoin but a simple economics.
Furthermore, the price of Bitcoin have not continued to go up, we have experienced several bullish and bearish seasons just like we have in every other market. Bitcoin have enjoyed overall growth not because people were compelled to buy it but because of the values it has continued to provide and the potential people see in it, hence the reason they chose to hold it.

simons_js

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Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.

The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners. However, this weakness no longer applies because Bitcoin always has a new ATH at every halving phase that occurs. So, I believe the price of bitcoin will continue to skyrocket in the future.

What do you think?

Topic: Satoshi forces the price of bitcoin to continue to rise over time - page 2. (Read 349 times)