what is correlation between bitcoin halving and bullrun - page 2.

shield132

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Okay, I'll try my best to explain it in a good and understandable way:
The highest percentage of society loves cars and probably dreams to own Ferrari. At first, Ferrari wasn't worthy because was a new thing and people didn't know what it was or why would they use it but once they understand the pros and cons of this, they started to buy it. Price started to increase as more people started to buy our Ferrari. Day to day, Ferrari was becoming popular, years have passed and it conquered the media, news websites, etc. But the problem is that Ferrari is limited to 21 million while there are billions of people on earth. Every year, Ferrari production is 50% lessened. As time goes, more and more people want Ferrari but it's production decreases. Despite the fact that everyone wants it, the price has to rise in order to satisfy people. With value X, 100 from 100 people will be able to buy it but when we value it 100000X, then only tiny amount of people can buy it, for example 10 from 100. That's why halving causes bull run

cr1776

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Quote from: pawanjain on February 26, 2021, 12:29:57 PM

Quote from: udayantha11 on February 26, 2021, 11:50:14 AM

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Let me keep it simple. A bitcoin halving occurs every 4 years and in every bitcoin halving the block reward decreases by 50%.
As bitcoin halving occurs the amount of bitcoins in circulation increases. This means that there are lesser amount of bitcoins left to be mined.
This in turn spikes up the bitcoin market since more number of people starts to accumulate as much bitcoins as they can.

The number of bitcoins in circulation can increase or decrease at any time, it does not depend on the halving. With every block mined, the number of bitcoins left to be created decreases since it gets closer to the maximum.

At a halving, the amount of new supply of bitcoins decreases by half. It initially went from 50/block to 25, then 12.5, then to 6.25 etc. This is the new supply of bitcoin created with every block. So instead of their being ~7200 newly mined bitcoins/day (50 bitcoins/block*6 blocks/hour*24 hours/day), now it is ~900 (6.25*6*24).

Approximately 6-9 months after each of the previous halvings, the fiat price has increased. Probably due to less new supply coming to market while demand increases (or at least remains constant). Will it always happen? Who knows.

Leviathan.007

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After each 4 years the block reward decreases and the miners will get 50 percent less than before and this will decrease the bitcoin available supply provided by miners. Now if you check the supply and demand theory, you will understand after decreasing on the supply the price will rise that's why after each halving cycle, the price of bitcoin can hit a new ath. Plus, there will usually a positive atmosphere and in the bitcoin markets and people will bore more greedy because they saw the last haling and they will take lesson, here increasing the greed will be another reason for the price to rise.

sunsilk

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Quote from: pawanjain on February 26, 2021, 12:29:57 PM

Let me keep it simple. A bitcoin halving occurs every 4 years and in every bitcoin halving the block reward decreases by 50%.
As bitcoin halving occurs the amount of bitcoins in circulation increases. This means that there are lesser amount of bitcoins left to be mined.
This in turn spikes up the bitcoin market since more number of people starts to accumulate as much bitcoins as they can.

About the correlation of bitcoin halving and bull run, this is the explanation OP. Rewards decreases that miners get while difficulty increases and in return of that, the effect is to increase in price.

The law of supply and demand can be the other explanation for its correlation to bull run. And in other words, once halving occurs, getting bitcoin is getting harder and becoming more scarce.

pawanjain

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Quote from: udayantha11 on February 26, 2021, 11:50:14 AM

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Let me keep it simple. A bitcoin halving occurs every 4 years and in every bitcoin halving the block reward decreases by 50%.
As bitcoin halving occurs the amount of bitcoins in circulation increases. This means that there are lesser amount of bitcoins left to be mined.
This in turn spikes up the bitcoin market since more number of people starts to accumulate as much bitcoins as they can.

mk4

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A bitcoin halving event will happen whether we like it or not because it's literally coded into the software since Bitcoin's inception. There doesn't need to be a 'reason' for the next halving to occur, besides Bitcoin reaching block 840,000 which is very likely to occur sometime in year 2024.

udayantha11

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2023 would most likely be as bearish as 2022

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

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