What is the significant of bitcoin halving - page 2.

348Judah

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Quote from: Sim_card on April 04, 2023, 02:40:48 AM

The news of bitcoin is going viral in some part of Africa

Not only in Africa but almost every part of the world, everyone is feeling geek about bitcoin and want to be identified with such technology because it's a decentralized one, but africa is just oppotuned to be among the fast growing continents with bitcoin adoption.

Quote from: Sim_card on April 04, 2023, 02:40:48 AM

I am from a third world country and don't have any money to buy bitcoin.

You don't need to always have money before you can have bitcoin, there are many ways to get bitcoin,one is to exchange it with fiat, another is to earn it, while you can also receive it as gift from someone, since it's a currency, it is more convenient for one to earn it by creating or providing a service which is your value, and receiving bitcoin for payment for such services rendered.

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Quote from: o_e_l_e_o on April 04, 2023, 04:23:46 AM

Quote from: Charles-Tim on April 04, 2023, 02:54:08 AM

[In economics and in reality, the higher the demand and if the supply is reducing, the higher the price.

So although the supply is continuing to increase, it is increasing more and more slowly as time goes on. And so a demand which is increasing more quickly, or even just increasing at a fixed rate, will outstrip the increase in supply and cause the price to rise.

The demand is fueled first of all by the miners, who feel the crunch on their finances first, so they start to hold more of their coins. This slowly spreads to the service providers of the miners, and their providers, and so on, until it reaches the exchanges and their users, up to which point the price acts perfectly normal and doesn't give any indication of a bull run.

o_e_l_e_o

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Quote from: Charles-Tim on April 04, 2023, 02:54:08 AM

If bitcoin halves, the supply will reduce.

This is misleading.

During a halving the supply does not reduce. The supply will continue to increase until the final halving event in ~2140. What does happen during a halving is that the rate of increase of the supply reduces.

Quote from: Charles-Tim on April 04, 2023, 02:54:08 AM

[In economics and in reality, the higher the demand and if the supply is reducing, the higher the price.

So although the supply is continuing to increase, it is increasing more and more slowly as time goes on. And so a demand which is increasing more quickly, or even just increasing at a fixed rate, will outstrip the increase in supply and cause the price to rise.

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Quote from: Sim_card on April 04, 2023, 02:40:48 AM

I understand that fiat currency in no time will depreciate to nothing,due to high rate of inflation.

Especially in Africa that we are and some other developing and underdeveloped countries where fiat will depreciate most.

Quote from: Sim_card on April 04, 2023, 02:40:48 AM

I have read about bitcoin halving which will becoming up next year,what is the significant of this and how come that this happens ? Is it caused by miners or that is how bitcoin technology was designed ?

If bitcoin halves, the supply will reduce. It started with 50 BTC as the mining reward before the 2012 halving. Bitcoin halved in November 2012 and the reward earned by miner in each block mined was reduced to 25 BTC, half of previous reward.

Another halving in 2016 and the reward halved to 12.5 BTC

Another halving in 2020 and the reward halved to 6.25 BTC

Halving in 2024 and the reward will halve to 3.125 BTC

The supply is reducing. In economics and in reality, the higher the demand and if the supply is reducing, the higher the price. Bitcoin demand is increasing during and after halving because many people are associating it to buying period when more new, retail and institutional investors will buy more bitcoin and the price will increase than reduce.

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The news of bitcoin is going viral in some part of Africa,including my country where I am from. This makes me eager to know about bitcoin and it's block chain technology,to enable me key into the cryptospace. I am from a third world country and don't have any money to buy bitcoin.

I decided to look for where I can learn and have the proper knowledge of bitcoin first,before I can think on how to buy and invest in bitcoin so that I don't end up regretting any of my actions after I have purchase bitcoin. I understand that fiat currency in no time will depreciate to nothing,due to high rate of inflation. This has made me to keep wondering,if bitcoin can maintain ones monetary value if purchase as an assest.

I have read about bitcoin halving which will becoming up next year,what is the significant of this and how come that this happens ? Is it caused by miners or that is how bitcoin technology was designed ?
Gracias

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