Topic: Why will BTC halving stimulate price growth? - page 3. (Read 722 times)
I think bitcoin will go into a bull run when halving comes because as far as I know the last time bitcoin experience halving, its price increase rapidly and that's why people are now focusing on their hodl because they know that there's a bull run that going to happen in 2020. But of course no one knows what will going to happen because like I've said before, bitcoin and other cryptocurrencies are so volatile and decentralized that you just need to take a risk in order for you to have a good money in the future.
I don't know the reason about it but i think it's because the supply is getting lower since the reward for mining bitcoins were halved (from 12.5 btc to 6.25 btc according to satoshi's paper) so, the demand for bitcoins will increase and the price increases law of demand and supply this is the reason why some altcoins with huge supply can get their prices up since the supply is very high. And the mere fact that halving of bitcoins hype some traders and big whales so, it is expected that whales will keep the bitcoin price high after the halving which a good news for bitcoin holders like us
Most people will say that it is because the supply will be affected after that but the price growth involved in BTC halving is always about the hype around it, why? Because a lot of people are expecting it to go up and it triggers a FOMO. If it's about the effect of the supply then Bitcoin won't just go up instantly but in the previous halvings we saw Bitcoin just went up on a short time frame and in that case its more about the FOMO involved rather than the supply being cut, so if the hype stops then expect it to either consolidate or go down. I know halving is a good news for us but really don't expect that everytime Bitcoin goes into halving it will just go up because of it. Because really you still don't know where will it go really or when the price rally will stop.
We can also read in here https://www.forbes.com/sites/forbesfinancecouncil/2019/05/10/what-will-the-next-halving-mean-for-the-price-of-bitcoin/#e4717015f340 the possible effect during halving.
It most cases that halving will have a positive impact on the market cause it helps to reduce the market volume but the demand will remain (or it will increase), therefore the price will also moving high.
As of many halving happens, BTC price is basically high and so people wanted and pretty excited to have halving again. And we don't know that it will trigger for a market bull run.
It most cases that halving will have a positive impact on the market cause it helps to reduce the market volume but the demand will remain (or it will increase), therefore the price will also moving high.
As of many halving happens, BTC price is basically high and so people wanted and pretty excited to have halving again. And we don't know that it will trigger for a market bull run.
BTC halving stimulate price growth simply because of the idea of supply and demand. At the current state we have a continuous supply of 12.5 BTC per 10 min then after the halving, we will have 6.25 Bitcoin supply every 10 min. Isn't that a huge stimuli for a price growth? Aside from that, adoption keep on increasing every minute and with that more demand is being produced so this halving will have a huge effect on the price growth of BTC.
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.
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.
A significant part of the crypto community, taking into account the previous history of the Bitcoin exchange rate, expects that after the halving 2020, the next period of the active bull market will come. In past periods, in addition to halving the reward to miners, there were many other factors that influenced the Bitcoin exchange rate. However, it is still not worthwhile to exclude relationship between the increase in its price and the ongoing events of the halving.
After every halving generation of btc is going lower and lower. Thats the main point
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 halving is literally halving the bitcoin, meaning that the amount of bitcoin that is mined and rewarded by the blocks will be halved, which means that the supply of the bitcoin available will drop down significantly and when the supply goes down and the demand stays the same as it is the prices will defiantly go up, and that is why a lot of people have been talking about it so much and also it is the reason why most of the investors are trying to buy as much as they can right now before this price ascension begin, so if you are trying to make some good profit from holding bitcoin now is your chance. Many people are confident that this event will trigger the next bull run.
What is the logic behind this?
Since miners reward is going to drop from the current 12.5BTC to 6.25BTC per block reward, so miners are expected to be selfish with their bitcoin and this will trigger a form of hoarding which will naturally cause a FOMO and buyers will start been bullish. I doubt we are going to get bitcoin this low in May 2020.
Bitcoin halving is just a law of demand of supply, miners rewards get shrink to half every 4years and that makes it more scarce and more valuable in price, even with the upcoming badass asic miners from bitmain it won't make a difference in mining reward, mining will still be profitable to those with latest miners
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?
Many people are confident that this event will trigger the next bull run.
What is the logic behind this?
Because we can't deny that the market works in cycle, bears and bulls, bubbles and burst.
I think not only in crypto market, but it is also relevant in other markets as well.
Although there is one parameter as well, supply and demand that we really need to look at. But halving is essentially the catalyst to start a new cycle and ended up in a burst similar to what we have seen in 2017. Just a question on how long are we going to get into a new all-time-high. Prior halvings (2012) took us 500 days to get to a new all time high, while the second halving (2016) takes around 1000 days to get to $20k.
@Qcrypto - prior halvings posted a huge increased if I'm not mistaken.
First halving, lowest price is $2 -> $200'ish
Second halving, lowest price is $600'ish to almost $20k.
And third halving, recorded lowest price is $3200 last year December 2018, new all-time-high
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?
You are right that it's not a fact this is going to happen. It's just what happened before, and people came up with a way of explaining it and hoping it will happen again. The logic is basically that miners affect the price in a serious way. That the price has to go up, so that mining is still profitable. And it often does. But miners don't have a major and direct influence on the price, actually. Moreover, less than a year ago the price of bitcoin went down to $3k from $6k, contrary to the beliefs of those who think miners are important and thought it was impossible.Many people are confident that this event will trigger the next bull run.
What is the logic behind this?
So the price might not grow after the next halving, but another reason here is that people try to stay positive and hope for the best.
As everyone already explained since the supply will drop because of the limited amount of bitcoins the price will increase gradually
then everyone is wrong, or maybe you misunderstood what they were saying.
supply doesn't drop, in fact it is the exact opposite meaning supply is always increasing as new coins are being created by new blocks and come into circulation.
the only thing that drops (by 50% or half) is the speed of that creation meaning if it is X bitcoin per day now, it will be X/2 after the halving (12.5BTC/block -> 6.25 BTC/block or 1800BTC/day -> 900BTC/day).
and finally the reason for price rise is that adoption (demand) is increasing day by day so if you imagine two vectors opposite of each other:
supply ----> <---- demand
after halving supply vector is weaker so demand pushes back to reach equilibrium, that is why price rises
supply --> <---- demand
I can understand how the price can rise when the halving happens.
The miners have electricity costs associated with mining. Cutting their coin supply in half will reduce their profits, so they must compensate with a higher price.
Since they are the "market makers" and they bring more coins into existence, naturally, they would start selling at a higher price to cover their expenses.
This, of course, cannot happen overnight and price will increase gradually.
But what I'm interested in if mining rewards drop by half, it's only logical that prices go up by the same value or around that range.
There must be something else that would make the price go up 10x. Either mass adoption or FOMO.
The way I see it, BTC halving is like Apple saying " Special offer - we are giving away Iphone X at 50% price". Yeah some people are going to be excited and buy it, and Apple will make a profit, but it won't be extraordinary.
As opposed to Apple announcing brand new IPhone where everyone will go crazy and buy at any price, so Apple makes Billions.
halving does not seem to be the type of event that would create a drastic demand, it will make the price go up by a nice bit, but nothing in the range of 10x that people expect.
As everyone already explained since the supply will drop because of the limited amount of bitcoins the price will increase gradually
then everyone is wrong, or maybe you misunderstood what they were saying.
supply doesn't drop, in fact it is the exact opposite meaning supply is always increasing as new coins are being created by new blocks and come into circulation.
the only thing that drops (by 50% or half) is the speed of that creation meaning if it is X bitcoin per day now, it will be X/2 after the halving (12.5BTC/block -> 6.25 BTC/block or 1800BTC/day -> 900BTC/day).
and finally the reason for price rise is that adoption (demand) is increasing day by day so if you imagine two vectors opposite of each other:
supply ----> <---- demand
after halving supply vector is weaker so demand pushes back to reach equilibrium, that is why price rises
supply --> <---- demand
As everyone already explained since the supply will drop because of the limited amount of bitcoins the price will increase gradually ... And this event is going to happen soon therefore people expect a bull run also at the same time you should look at the price chart , it has been constant for a few weeks now .. it is not getting considerably lower and nor doing anything .. generally it happens when it is suddenly gonna spurt up.
As we know that Halving Day makes the amount of bitcoin mined per block reduced by half, this routine cycle automatically makes bitcoin more difficult to mine. If demand is higher, meaning prices will also be higher. Moreover, cryptocurrency users are increasing at this time. If coupled with FOMO the results will be even more surprising. Even though it is unpredictable, we must not miss this opportunity.
This is completely a demand and supply game. More the demand to the decrease in supply every four year will cause the demand high even if the user community hasn't increased as the supply has decreased. This is how the market is expected to grow by the time of halving. It happens close to the days of halving or after the days of halving.
This doesn't assure with a big increase in price, but there'll be good increase to some extent. This has happened till the past halving, and the same creates a big expectation among the entire userbase.
This doesn't assure with a big increase in price, but there'll be good increase to some extent. This has happened till the past halving, and the same creates a big expectation among the entire userbase.
It may or may not trigger a bull run.
The reward will drop by 50%. If the demand stays the same, the decreased supply could thrive the price upwards.
Of course this doesn't has to be the case. And chances are high that if everyone is expecting it to happen.. it won't happen.
The supply will decrease because the block reward decreases from 12.5 to 6.25 BTC.
This does not influence the 'speed' of the blocks (i guess you mean the time it takes to mine a new block ?)
Yes, this happens every ~4 years.
1st halving: Reward dropped from 50 BTC to 25 BTC (November 2012)
2nd halving: Reward dropped from 25 BTC to 12.5 BTC (July 2016)
3rd halving: Reward will drop from 12.5 to 6.25 BTC (somewhere mid 2020)
The reward will drop by 50%. If the demand stays the same, the decreased supply could thrive the price upwards.
Of course this doesn't has to be the case. And chances are high that if everyone is expecting it to happen.. it won't happen.
The supply will become more limited because of the slower blocks
The supply will decrease because the block reward decreases from 12.5 to 6.25 BTC.
This does not influence the 'speed' of the blocks (i guess you mean the time it takes to mine a new block ?)
im also curios why people can say that halving can up the price of btc . does halving happened before ?
Yes, this happens every ~4 years.
1st halving: Reward dropped from 50 BTC to 25 BTC (November 2012)
2nd halving: Reward dropped from 25 BTC to 12.5 BTC (July 2016)
3rd halving: Reward will drop from 12.5 to 6.25 BTC (somewhere mid 2020)
With all of those explanation, if it's clear to you on how halving affects the supply and demand of bitcoin. Look also to this pattern which I quote below.
See also this chart.
Source: https://www.reddit.com/r/Bitcoin/comments/97zsmt/infographics_on_bitcoin_halving_relative_to_price/
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 $657.61.
The third halving is due to happen in 2020 and looking at the past trend you can expect the price of 1 BTC to go beyond the all time high.
The third halving is due to happen in 2020 and looking at the past trend you can expect the price of 1 BTC to go beyond the all time high.
See also this chart.
Source: https://www.reddit.com/r/Bitcoin/comments/97zsmt/infographics_on_bitcoin_halving_relative_to_price/
I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.
What is the logic behind this?
Many people are confident that this event will trigger the next bull run.
What is the logic behind this?
People in this community not tired to wait the rest ght time of the bitcoin bull run before people expect if bitcoin reach the 15,000$ during the bitcoin price is reaching 13,000$ last few bitcoin possible to get another bull run.
We need to to be strong and extend patience when will the right time for us to get high profits if bitcoin come again for another bullrun.
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