Quote from: ebliever on April 07, 2015, 01:33:52 PM

Quote from: DumbModz on April 07, 2015, 01:21:39 PM

With Bitcoin halving soon does that mean the price of Bitcoin has to double or is mining just going to stop. Another thought is mining is going to get more efficient. What are some of your thoughts on this matter?

Halving the incoming supply of new coins will have a modest beneficial impact on the price (everyone remember Econ 101 and the Law of Supply and Demand?)

I don't think it will have a sudden impact, since the halvening is a public event everyone can anticipate. And I don't think the impact will be huge, because the current supply of 3600 coins/day is dwarfed by the amount of bitcoin traded every day (50-100 times that?). Still, over time the tighter supply of fresh coins should pull prices in an upwards direction. Bitcoin money supply is currently growing at about 10% annually, making it inflationary in the near term. Cutting that figure to less than 5% will put it into a much more stable rate of growth. And after the next halvening after that it will be growing slower than most well-managed fiat currencies (if there is such a thing), AFAIK.

I agree here completely. With less btc generated per day, my coins I'm hodling will become more valuable. More valuable coins gives miners and incentive to stay in the game. However, I'll also add that our curent network hashrates are super sky high. I'm sure many miners could drop out and we'd still have a safe network.