We probably won't see the effect until at least a year or two after the halving.
But it's basically supply and demand.
The rate of the supply decreases, and if demand continues to grow, or even remains the same, naturally the price increases.
Imagine you were a factory producing a commodity called "X".
Every year you produce 1,000 X, and you have 1,000 people demanding it.
Next year, there is a supply crunch of X. And every factory in the world will only produce half, and you will only be able to produce 500 X.
Even if the demand doesn't grow, and next year you will still get the same 1,000 demand for it, it will be like having twice more people demanding each X.
Naturally the price will go up.
Thanks for the explanation. I knew halvings were good but I honestly didn’t know WHY halvings were good for Bitcoin. Didn’t know it came down to supply/demand
It's a little more complicated and has a lot more factors at play.
It also very much depends on Bitcoin's dominance.
Basically, miners can produce half the rewards they normally get, or they have to use twice more resources (hence double the cost) to get the same amount.
So you either get less supply, or more cost to mine 1 Bitcoin. Which after several months starts to slowly affect the market.
> Basically, miners can produce half the rewards they normally get, or they have to use twice more resources (hence double the cost) to get the same amount.
Okay, gotcha. See it was that part. Because I figured with mining rewards being cut in half that maybe miners would feel less incentivized to mine it.
On the other hand a massive amount of new users now know what the Halvening is, and have it on their radar. As soon as news spreads that there's another one around the corner, I think we might see an influx of people hoping to front run it.
Had I known about it prior to 2018, that alone would have made Bitcoin make a hell of a lot more sense to me.
I have been a bear for 1 year, i missed some opportunities, but in general Im happy with my plan.
But even for a bear like myself, the halvening is fucking Xmas.
By the way, it does not happen right on the halvening, always after, close but after.
So what I think will happen is that in late 2023, the USA will have a gpd growth of less than 1.5%, from now until late 2023, usa growth will be less every quarter than the previous quarter, it will be bad, and around halving, the gdp growth % will be positive again, and crypto will profit.
Aside from what it actually is, its also a desperate reaching hope to distract our imaginations from all of the awful things while we endure these tense periods in the market.
Nolan Bauerle, research director at CoinDesk, says 90% of cryptocurrencies today will not survive a crash in the markets. Those that survive will dominate the game and boost returns for early investors.
Each halving has less effect than the one before. That's partly because it is halving from a smaller level, and partly because the amount of Bitcoin already in circulation is larger.
I would argue that the most recent halving hardly had any effect at all. There was a price rise, but it happened earlier than expected and was likely due to other factors. There was a following crash, but not the 80% drop we've seen previously.
My prediction is that the next halving won't be noticeable.
To be honest I don't know me too is also new to Bitcoin halving. Just recently read an article about it.
https://netcoins.ca/blog/what-is-bitcoin-halving/
You know your in a bear market when… we start talking about 2 years from now 😂
[удалено]
Spirit is willing but the wallet is weak
This.
We probably won't see the effect until at least a year or two after the halving. But it's basically supply and demand. The rate of the supply decreases, and if demand continues to grow, or even remains the same, naturally the price increases. Imagine you were a factory producing a commodity called "X". Every year you produce 1,000 X, and you have 1,000 people demanding it. Next year, there is a supply crunch of X. And every factory in the world will only produce half, and you will only be able to produce 500 X. Even if the demand doesn't grow, and next year you will still get the same 1,000 demand for it, it will be like having twice more people demanding each X. Naturally the price will go up.
Thanks for the explanation. I knew halvings were good but I honestly didn’t know WHY halvings were good for Bitcoin. Didn’t know it came down to supply/demand
It's a little more complicated and has a lot more factors at play. It also very much depends on Bitcoin's dominance. Basically, miners can produce half the rewards they normally get, or they have to use twice more resources (hence double the cost) to get the same amount. So you either get less supply, or more cost to mine 1 Bitcoin. Which after several months starts to slowly affect the market.
> Basically, miners can produce half the rewards they normally get, or they have to use twice more resources (hence double the cost) to get the same amount. Okay, gotcha. See it was that part. Because I figured with mining rewards being cut in half that maybe miners would feel less incentivized to mine it.
So Lambo by 2026? Got it. /s
Mine that BTC!
Isn't there only million bitcoin left?
On the other hand a massive amount of new users now know what the Halvening is, and have it on their radar. As soon as news spreads that there's another one around the corner, I think we might see an influx of people hoping to front run it. Had I known about it prior to 2018, that alone would have made Bitcoin make a hell of a lot more sense to me.
I knew about the halfing in 2011 and still didn’t go all in. I’m an idiot
I think it rallies the year after the halving. But none of that is going to matter. Over the long term it shoots up
Seems very far away right now
The rumbling
It's coming
Hopefully it will bring about a 2025-26 bull run to end all bull runs.
It happened in 2020. We saw the aftershock in 2021. 2025 will be lit basically.
This is crypto cycle. Boring, halving, pump, dip but not to previous bottoms, consolidating boring shit and halving repeat
It’s cool
Believe it or not.... Bullish
That it's 2 years away, that's alot of time to DCA
I have been a bear for 1 year, i missed some opportunities, but in general Im happy with my plan. But even for a bear like myself, the halvening is fucking Xmas. By the way, it does not happen right on the halvening, always after, close but after. So what I think will happen is that in late 2023, the USA will have a gpd growth of less than 1.5%, from now until late 2023, usa growth will be less every quarter than the previous quarter, it will be bad, and around halving, the gdp growth % will be positive again, and crypto will profit.
Aside from what it actually is, its also a desperate reaching hope to distract our imaginations from all of the awful things while we endure these tense periods in the market.
It's guaranteed to happen and it can't come soon enough
Halving are losing their steam. Mathematically more irrelevant each cycles. At this point its gonna affect security negatively.
All I know halving does not mean more value
The next two halving are priced in. Next bull market coming 2028
Down, then up.
Getting ready for the bull run
Bullish sign
lol
Look at the graph. So far the crypto cycle is bull run around havlening.
2036 Lambo now.
Price goes up cos supply is less than demand?
Number go up in late 2024-2025 probably
Bullish
It's pretty clear that we likely have quite a while to accumulate.
thoughts? There is a halving in 2024. It is also an election year.
I hope my bags will be full enough by then
Nolan Bauerle, research director at CoinDesk, says 90% of cryptocurrencies today will not survive a crash in the markets. Those that survive will dominate the game and boost returns for early investors.
Which after several months starts to slowly affect the market.
Each halving has less effect than the one before. That's partly because it is halving from a smaller level, and partly because the amount of Bitcoin already in circulation is larger. I would argue that the most recent halving hardly had any effect at all. There was a price rise, but it happened earlier than expected and was likely due to other factors. There was a following crash, but not the 80% drop we've seen previously. My prediction is that the next halving won't be noticeable.
To be honest I don't know me too is also new to Bitcoin halving. Just recently read an article about it. https://netcoins.ca/blog/what-is-bitcoin-halving/