Quote from: Amph on August 01, 2015, 07:04:44 PM

Quote from: orneryjack on August 01, 2015, 06:31:48 PM

Quote from: srgkrgkj on August 01, 2015, 06:22:13 PM

I don't think we will experience a bubble after the halving as much as a natural rise as the supply of bitcoin will go down and simple economics mean the price per bitcoin will go up mate Cheesy

The supply of Bitcoin is constantly increasing, currently at a rate of 7 to 10% per year.
After the halving, bitcoin supply will not decrease -- only the rate of increase will drop to 4 to 5% per year.

which is a decrease if you think about it, a decrease in comparison to what it was before, this will have an impact if the price isn't already skyrocketed due to demand, in that case you will not be able to notice it

There is some confusion between "supply" meaning money supply, and "supply" w.r.t supply and demand. However, the halving does not decrease the "supply" in either of these cases -- it lowers the rate of increase.

The money supply is constantly increasing due to mining. When the halving occurs, the money supply will continue to increase but at a slower rate.

The increasing money supply tends to cause the supply curve to shift to the right over time, basically because there are more bitcoins to sell. Note that there are other factors that may have a greater effect on the supply than inflation (at least in the short term). After the halving, the increasing money supply will continue to cause the the supply curve to shift to the right over time, only more slowly.