Topic: Why does the halving increase the price? (Read 429 times)

There's something special and that is what you just pointed out. When something is having the same effect whenever it happens, it means there's something special about that event. Bitcoin halving was preprogrammed from the birth of Bitcoin.

It didn't just come from anywhere but was put by satoshi himself because it's special and has great importance. Without the halving, the market wouldn't have had an identity. I don't believe there would had been a four years cycle of Bitcoin. It's the halving that's the mark of the bull market. The halving is what we look up to, the halving makes the circulation of Bitcoin coming into the market to reduce. What this means is that with the same adoption, there'll be lesser amount of Bitcoin available for trading and this increase the price of available Bitcoin.

It's simple demand and supply. There's always demand for Bitcoin so when the supply reduced (in this case just the circulating supply and not total supply) it'll make the price to go up and that's why the halving increase the price. Obviously there are other factors to contribute to this too but we're focusing on just halving for this discussion.

In recent years, the price of Bitcoin could be said to be cheaper than it is now. The low price makes it easier to buy bitcoin in larger quantities. But nowadays, even though the price of bitcoin is no longer what it used to be when it was still cheap, in my opinion, don't ever give up investing just because it's difficult to buy whole bitcoins. Because bitcoin still has a lot of potential to continue to experience price increases.

And the question is, why are more people investing their money in Bitcoin during the halving? I think the answer is because they are interested in making a profit in a bull market.

Yes, the demand usually increases before halving, because more and more people are willing to catch the train.However, the rise of the price can also be explained by "the math" essential for bitcoin. The reward for the miners becomes less, but there still have to be reasons for them to keep mining, that is why we can observe some kind of a compensation as the price is going up.

Three data points are not large but good enough to work with;
Many people have been saying about the reduction of miners reward;
Reduction of new coins entering the market;
And many more reasons why halving increases the price;
I acknowledge that the above are all reasons;
But remember that the hype and expectations that this will happen is the reason people indirectly change their behavioural attitude to make it happen!
The social media hype when the coin starts rising is another factor.

You're right. The halving is not about the Bitcoin supply being cut in half, etc. However, to avoid further misconception it's better to explain this way.
The halving is an act of creating or maintaining BTC scarcity and it's technically an act of splitting in half the miner's reward.
It's a policy created by Satoshi to counteract inflation in the market to increase demand.

Those are repeating a very common misconception.

First, the supply is not reduced by the halving. Instead, the increase in the supply is reduced. The supply increases with every block until it reaches 21 million.

Second, reducing the supply does not increase the demand. In general, supply and demand are independent functions.

The word Scarcity stands as the major trigger for the BTC price pump which is usually driven by Halving. Thus due to the market pump  more investors arise and everyone seem to be hoarding it enhancing  more scarcity moreover, the Bitcoin is getting halved , reducing the circulation of bitcoins entirely.  Therefore, there are many  a lot of reason to buy Bitcoin currently

There's nothing special about halving or specific reason why the price will increase but I think people investing in Bitcoin because when halving is done the reward in mining will be reduced in half meaning that the new BTC that is mined are not the same as before. It is now normal to invest in btc when halving is near. When you think about it where the mining reward is halved then that only means that if many people are acquiring btc then it would be very hard to accumulate since the reward is halved and the more people buy then the more they are willing to pay higher price just to obtain btc hence price increases.

Because pf.the reduction in the Bitcoin block rewards that pave the way for more scarcity and resultant into increase in the value of the commodity, so this is not only peculiar to Bitcoin alone,  but every other form of investment or asset that has a circulating supply.
Bitcoin halving is a memorable event in the Bitcoin network that paved the way for alot of scarcity and price increases even though the price of Bitcoin may not automatically increase after halven, and if there is any possible discount on Bitcoin price after halven many expert investors will buy heavily into it because they already know that in no distance time, Bitcoin price may reach and record a new all-time high which will put them in profits.

Bitcoin is a digital currency and it was not meant to be stabled or coming back to it normal position whenever the period has come but no. Bitcoin in it volatile nature was created to value ahead and not to come back periodically. And all the halving that had been occurred, this coming one is my first one to be witnessed. And when new Bitcoins will be released, it would be 4 yer interval and this yes April is the designated time for the halving. We can't predict Bitcoin halving, and there is still time so let see how the halving will be in the ine when half Bitcoin will be released to the Blockchain. And it is not a matter of premature, you have only spoken your mind.

Those who bought after the halving are those who get carried by the hypes and some people are like that, they don't invest if that commodity is not the talk of the town on how it has increased in price, this makes them to feel that is the best time for them to invest, thinking that the price will continue to pump till infinity and vefore they know it they will miss out from taking profit and run at loss the moment the bull run is over.

It is not likely, but it is certainly possible. It should definitely be some kind of "black swan" event that would crash the global market and cause disruptions all over the world.

If it is more or less business as usual, then it will very likely happen like every time before, because all those who have invested a lot of money in Bitcoin will in any case use the halving as a trigger for a new bull run. Some believe that the price of BTC will go up after the halving because miners "produce" half as much BTC as before, but even though it may have made some sense before, today's 900 BTC per day is not something that has too much impact on the market considering the amount of BTC that circulates through the markets anyway.

I think that the "bad" scenario when the halving wouldn't have positive attitude to bitcoin is rather unlikely to happen. There has to be really unfortunate news for this to happen. I more tend to suggest that the history will somehow repeat itself and we will see a new ATH after this year halving. Like we did previous times.

Actually that is happening when hype is going to happen that's why we see a lot of people got FOMO at that time since they don't want to be left behind on the event happening that's why we can assume that more buy orders really happen when halving happen plus other contributing factor is the greed feeling is high for people at that time that maybe the reason why bitcoin pump when halving.

We may not know the 100% accurate answer with this but what it shown right now that when halving came to many people discuss about positive things to happen with bitcoin that's why to many people are convince to buy and hold. But let see what will happen for this year halving since we can speculate if there's something good will happen or we will see different condition right now and bitcoin will remain like this despite of this long time event awaited by a lot of people.

I love the way you used your college experience to explain the price movement of Bitcoin, any newbie would understand perfectly if he can relate well. For some weeks now, the price of Bitcoin has been wondering about in $42, $43. And this might even be the least we may see or experience this year, it's possible. Talking about the devalue of fiat currency, that is a continuous process especially in my country, our fiat currency get worse every now and then. The only way to escape is keep some of your savings in Bitcoin network.

I don't know whether you have data to proof that people actually buys more Bitcoin after halving? From my experience and observation I think that people buys more Bitcoin before halving, because when halving is happening Bitcoin supply is cut into half, meaning that the scarcity will make price to increase. So ideally people will know that it's more profitable to buy before halving, knowing that after it that price will keep increasing till it hits ATH. So correct me if I'm wrong, because this is mainly based on my personal observation.

The price of bitcoin always depends on investor demand. After halving mining rewards reduce,  investors think less Bitcoin will be added to circulation now than in the past. Most likely, that's the reason why they jump into Bitcoin after halving instead of before halving. But this time it seems investors are also interested before halving, hence the price increasing before halving as well. We are already in the bull market and might increase more after the halving. Also, ETF rumours are playing a major role in the current bull run. If ETF gets approved, then we will see more pump on the Bitcoin chart. However, each investor has a different mindset, and they think differently, which doesn't necessarily match my thoughts. I just expressed my personal opinion.

Yeah, a total disconnection from the internet. IIRC, I've done this I think on my early days when I haven't bought yet my hardware wallet.

I've seen a lot of people talking about that low and they'll start buying. But it seems that we're not going to see it anymore and this how the progress on this market is. We see higher lows every time the cycle is in and it's your call whether you'll buy soon before the halving or you'll wait a little bit longer.

That's your money so, spend them wisely.

Let me tell you something, I remember back in the days when I was still in college and anytime they gave me an amount money for breakfast, I used to be happy because the amount can get me anything they sell in the school and I will be okay but guess what today, that same amount of money are giving to toddlers for breakfast and they will complain that is too little, it wouldn't do much for them and that is because the purchasing power of Fiat is dying every year. What you bough last 5 years for a $, you can't do that today, that applied to bitcoin, not saying we might not see bitcoin at those price again but with development coming so far in bitcoin, $40k will become a normal for people that have the means to buy and $7k might be a history.

When Bitcoin was traded around $3, many of us here didn't have the means to buy it then, many of use in 2009 would'nt look at bitcoin twice but it is because the nature and profit is appealing that is why they want it and people that have the means and want to buy are going to buy and they will sell when they have a significant profits.



Bitcoin bull run most of the time is after the halving, they don't want to be stuck when they aren't sure yet. The answer is simple, has believe that Bitcoin price grow in every four year circle and they know that miners wll anticipate for the price increased because they will most likely be operating at lost.

I cannot tell exactly why people do what they do, but i think people buy Bitcoin after the halving and when the price begins to rise, because they prefer to buy assets that are rising, so they can make profits immediately and sell. The people who buy in this way do not really believe in Bitcoin and they do not want to hodl it, but they basically just want to earn ROI in the short term.
This amount is more than enough to have an air-gapped or hardware wallet, and as for an air-gapped wallet you do not even have to spend money to get one, you can create one for yourself with some of your old devices.