Why will BTC halving stimulate price growth?

julius caesar

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Quote from: Qcrypto on September 20, 2019, 01:36:46 PM

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

The reason why the halving will make the price of bitcoin become higher it is because it will lessen the supply of bitcoin into half. If that happens the demand of the consumer will be much more higher than the supply that will cause of it to have a price growth. That is how halving will work sooner or later. Lets just hope that after the halving, bitcoin price will be 20000$.

msarro

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One reason is that halving will cut down the supply of new bitcoins coming into the pool and if demand of bitcoin increases then price will surly go up. It’s just a speculation there is no confirmation that price will go up. Now scenario is totally different then previous halving.

secone

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Quote from: Qcrypto on September 20, 2019, 01:36:46 PM

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

imagine the cost to mining 100bitcoin diffirent with the cost before halving example :
before halving : 100bitcoin need 4 block (25btc/block)
after halving : 100bitcoin need 8block (12.5/block)

that's the diffirent timing, you can get this logic to cost of mining too.

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Quote from: Qcrypto on September 20, 2019, 01:36:46 PM

Many people are confident that this event will trigger the next bull run.

Between who them that coin halving will result in price growth of BTC? It’s just a speculation that due to halving in coin reward per block will take BTC price up. This prediction may or may not be true. Based on previous predictions I don’t think this will go true also.

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Quote from: Bitcoinislife09 on January 13, 2020, 04:26:25 AM

Quote from: smartbitcoininvestor on January 13, 2020, 03:33:42 AM

I predict that the halving won’t affect the price all that much. There are already so many bitcoin in the ecosystem, and the halving will just slow down the rate of new bitcoins.

Regulatory controls, new platforms supporting bitcoin and an increased rate of new users (and investors) will probably be the main driver of bitcoin price growth.

If you're going to reduce the supply in half surely the market price of bitcoin is going to be affected for surely it will result to an increase in the market price since the demand and supply is not going to balance even today compare it if you are going to make the supply in half but for sure it was just the market price that is going to be affected it is still the same. Theoretically it will be difficult to get bitcoin at that rate and market price could already be double.

Indeed, cutting down the supply leaves the value remaining to the ones that are left which causes price increase when there is low supply. furthermore, the increase in demand due to the low allocated price could stimulate a price increase. That is why the halving which will happen this year will potentially cause a price increase on bitcoin.

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Quote from: Qcrypto on September 20, 2019, 01:36:46 PM

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

There might be basic concept behind the logic of bitcoin expecting a bull run by may 2020. Peoples have already experienced a bull run and as per the financial year 2017.

Actually, in the month of April the salaried individuals are asked to send their yearly statements to the Income Tax department and it might be a basic reason behind why the whales are expecting May to bring the bull runs because after peoples auditing their financial statements for the academic year, they could move their funds into cryptocurrencies which might perhaps save their taxes by hiding the actual amount of capital they hold from the governments as cryptocurrency transactions can hardly be traced which might give them a ease to store their funds into.

It turns out to be a global cause and it caused the price pump faster bringing us into the bull runs.

wack slacker

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I firmly believe that it will happen again, but it still depends on many different factors.
First, is the money that large investors continue to pour in to increase the value of bitcoin? Next is the bitcoin mining activities continue to take place or not?
There are currently a number of bitcoins that are not trading and it has been in major wallets for the past year.
The scarcity of bitcoin available in the market does not need to be halving. But halving is a big event and it stimulates us to buy bitcoin.

Asmonist

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This is the period where supply is low and the demand stays the same. So most probably the price goes up. Maybe this time most people are investing in the half of the year from the last six months they earned. And midyear is a good time to invest to have at least another six months to make it grow. That's only my thoughts. But I know there are other depth and technical reasons as well.

Eugenar

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When supply drops, and demand stay the same, prices will rise, that is what will happen if Halving. We know that the current block reward is 12.5 BTC being minted every 10 minutes and after halving only 6.25 BTC will be minted every 10 minutes.That means that there will be fewer coins being sold by the miners.

This will lead to miners to decide between two possible options, to sell their BTC reward for a higher profitable price, or to remain with the price but continues to mine but will surely lead to them to realize that their profit wasn't enough to pay for the electricity bills they have and might turn out to them selling their mining facilities and leaving the market.

Any two could happen but what surely does is expected, is to see the people in cryptocurrency space like us to lead the market in higher price considering the positive option that miners could choose.

Bitcoinislife09

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Quote from: smartbitcoininvestor on January 13, 2020, 03:33:42 AM

I predict that the halving won’t affect the price all that much. There are already so many bitcoin in the ecosystem, and the halving will just slow down the rate of new bitcoins.

Regulatory controls, new platforms supporting bitcoin and an increased rate of new users (and investors) will probably be the main driver of bitcoin price growth.

If you're going to reduce the supply in half surely the market price of bitcoin is going to be affected for surely it will result to an increase in the market price since the demand and supply is not going to balance even today compare it if you are going to make the supply in half but for sure it was just the market price that is going to be affected it is still the same. Theoretically it will be difficult to get bitcoin at that rate and market price could already be double.

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Quote from: Qcrypto on September 20, 2019, 01:36:46 PM

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

Using basic logic, we can say that halving is the day awaited by all holders or short-term and long-term bitcoin investments because when prizes are smaller and demand is greater, it is very likely that the price of bitcoin will move higher and at a very step quickly approaching the highest level by the end of the year is reduced by half.

smartbitcoininvestor

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I predict that the halving won’t affect the price all that much. There are already so many bitcoin in the ecosystem, and the halving will just slow down the rate of new bitcoins.

Regulatory controls, new platforms supporting bitcoin and an increased rate of new users (and investors) will probably be the main driver of bitcoin price growth.

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Quote from: lightningmelo on September 20, 2019, 01:58:04 PM

Every 4 years, the block reward drops in half, which is commonly known as the halving event.

The current block reward is 12.5 BTC being minted roughly every 10 minutes.

After the halving, only 6.25 BTC will be minted every 10 minutes.

This means that there will be fewer coins being sold by the miners.

Supply drops, demand stays the same. Price goes up.

To cap your reasons up or in addition I am basing my judgment and fact on price growth of bitcoin in the aftermath of halving that price history repeat itself, having scanned through previous halving with charting analysis shows how price grows and pumped after halving of bitcoin in the previous years to prove a point that supplies drops while demand exceed supplies invariably pumps it price.

crossabdd

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- first is the mining difficulty level will increase 2x, and trigger the small miners to retreat / stop. until bitcoin mining will decrease, while demand for bitcoin gets bigger.
- both follow the previous chart pattern. which when after bitcoin halving, charts continue to increase.
- I think the latter is by economic logic. which is when the item is more difficult to get, the price will be higher.

Cointikka

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Quote from: Cointikka on September 20, 2019, 05:59:50 PM

Bitcoin Halving is bad for miners as the block reward drops in half but, good for HODLers.

The first halving happened in 2012 at that time the price of 1 BTC was $12.22. The second halving happened in 2016 and price of 1 BTC was $657.61.
The third halving is due to happen in 2020 and looking at the past trend you can expect the price of 1 BTC to go beyond the all time high.

A small update sep last year I wrote the above lines and was pretty much convinced that BTC should create a new ATH. Looking into the present scenario and the market conditions, I am pretty much convinced that there will be short Bull run early April .

BTC will go beyond the price of 10k but it will face a tough backward thrust at 11k. I do not think there will be a new ATH this year.

Things might change in the coming months before halving.

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Quote from: bitbunnny on September 26, 2019, 01:45:11 AM

I'm not sure about that. It might have positive impact on.price but only on short term and I don't expect some significant price rise.
Some expected much in that sense of Bakkt and since the price didn't grow now they have similar expectations from halving but they might end up equaly disappointed.

I think this is different from Bakkt. Bakkt is about adding adoption in the market but it does not mean it can double the number of people that adopted Bitcoin instantly while the halving is simply means supply cut into half and that is instant the moment that 6.25 Block arrive. What I am trying to say is that I believe that this halving has a greater impact than BAKKT. The idea itself brings hype to the market and can easily turn a bearish sentiment to a bullish one.

Darooghe

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Past performance not being a good model for the future, keep it in mind. Bitcoin has only existed for just over 10 years. That means there's only been two halving events so far. There's not that much data yet. A lot of people thought Bitcoin would be a lot further ahead in terms of adoption by now too. We'll just have to wait and see. If the price really tanks and stays down, i'm pretty sure that's going to invalidate the model anyway isn't it? Will decrease demand which must keep increasing for the model to work. Since payments with Bitcoin are not cutting it, we basically have to hope demand comes from the price mooning. If not it’s hard to see where it’s going to come from. I'd love for it to be accurate personally. I'll be richer than today in a couple of years if it is. I am optimism anyway.

Miklight88

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this will definitely does increase the price as thise in the mining business is having less reward for the work and the hype in price will be the only way to get back the profit in using fir the running cost, but also kind of surprise when bitcoin was very low and the reward was just 50btc then and same eletricity was consumed with low price and this keep me wondering how it was possible then but i realise that be in business is to have more profit.

bitbunnny

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I'm not sure about that. It might have positive impact on.price but only on short term and I don't expect some significant price rise.
Some expected much in that sense of Bakkt and since the price didn't grow now they have similar expectations from halving but they might end up equaly disappointed.

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Quote from: meanwords on September 22, 2019, 09:22:33 PM

I've read that the only reason why Bitcoin price starts pumping before the halving because people assume that the Bitcoin will pump in price. They will buy before the pump which results into Bitcoin actually pumping at the year of halving. Same goes for every copy-cats of Bitcoin. As long as a lot of people believing in something like this, it will surely happen.

This may really not work this time around because people have seriously this period stayed away from FOMO, in the previous hype that we have had, most people have always been a victim of FOMO, and this was the thing that resulted to an increased value in 2017 that gave ATH that we got, because people kept believing that the price will continue to rise and because they don’t want to miss out.

Many keeps pumping money in from every angle which little did we all know that this was exactly the thing that was actually facilitating the price until we had no one that wants to FOMO again and then the market crashed. When halving comes like everyone believes, the effect of halving is not what will actually make us witness a price increase, but effect of our belief that it will is what may make it increase. Just like this bakkt, if bakkt will make the value of bitcoin grow without wasting much time, it would be because of our believes and not the halving itself.

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