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.
Confused here. Please help.
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.
I don't time events like some any other market trader, but considering I am in a different environment, 72 weeks is indeed ages to count.
As far as the average Bitcoin user is concerned, I don't think this process has a lot to do with how they view Bitcoin or if they will buy or sell it. That said, it wouldn't make sense to think that less supply = less demand. Less supply will cause the market to rise not only because less supply + same demand = more difficult to obtain, but because people will see the rise it causes and want to get into Bitcoin. People will view Bitcoin as more successful the more expensive it gets, thus causing more attraction. That is, if the massive rise and falls and market volatility from time to time don't keep people away.