Quote from: Mikestang on March 09, 2015, 06:36:32 PM

Quote from: dothebeats on March 09, 2015, 06:09:27 PM

Quote from: EcuaMobi on March 09, 2015, 06:04:06 PM

Quote from: dothebeats on March 09, 2015, 06:00:27 PM

Quote from: EcuaMobi on March 09, 2015, 05:50:41 PM

Quote from: dothebeats on March 09, 2015, 05:40:12 PM

The halving is near, and as many of us know, it will slow the amount of coins "minted" each time the miners find a block. I understand the basic of supply and demand, and I also know that the lesser the supply is, the higher the price. But what if there is a less supply but also less demand on the other side? Would the price still be high as expected? Or will it be low because apparently there are no buyers on the other side of the market?

Confused here. Please help. Huh

The halving of the reward is only one factor. Of course if the demand reduces more than the supply then the price will go down.
But the halving means a price increase is more likely (just likely).

As far as I can comprehend (because I am an economics noob) less supply = high price. That was at least what my teachers taught me, but what if less supply = less demand? Would the expected price still high or no? Sorry but I cannot really get it. Huh

Less supply = higher price.
Less demand = lower price.
That's easy with a single variable.

If both supply and demand change then you need to know which changed more.
For example if supply reduces 25% and demand reduces to half then the price will go down.

That did help. I'm slowly gaining some knowledge with this problem in my mind. I've been thinking about it for hours now and I'm quite shy to ask this. Sad

Thanks for answering. The help is really appreciated.

I think you might be struggling with it because you are basically trying to predict the future based on a few knowns today. Economic forces are not simple matters, and usually if you expect A to happen then B will happen. There's more to supply and demand than just "supply" and "demand", those two terms are very broad and encompass and number of different elements.

I completely agree. On an economic point of view, the terms "supply" and "demand" are somewhat very broad and complex--incomprehensible to the not-so economist-type of person, including myself.