Post
Topic
Board Economics
Re: Bitcoin halving to be canceled?
by
deisik
on 25/11/2015, 16:48:35 UTC
I'm against the halving too. I think all major pools should fork bitcoin to not-halving version which will be supported in the future to maintain miners profits.
I don't see why you want to do that at all? Lower supply means higher demands for bitcoin so the price will increase which pumps the price of it

The falsity of this assumption has been explained many times already (me included). Quoting myself again:

Miners will produce only half the amount of bitcoins after the halving, but this doesn't in the least mean that the total supply of coins will diminish accordingly since they don't sell all their coins even now (when reward is high), and they are not the only ones who sell bitcoins. Given that a) they can't increase production (i.e. the number of new blocks found per unit of time, which could potentially offset the drop in reward), and b) they may actually begin suffering losses due to lower reward per block (I don't expect their profit margins to be high due to tight competition), I see it as mostly inevitable that they will have to sell more coins than they sold before the halving (i.e. now sell), in order to cover their expenses (which remain the same per block)

Once the Bitcoin halving occurs, miners will get half as much what they earned before the halving. If their profit margins are not high enough to cover their operating expenses with twice as less (yeah) revenue, they will bear losses and will have to cease mining. But if, nevertheless, their profit margins are high (and they already got back their capital expenditures), then they don't need to sell all their coins in the first place

In short, life is not what it seems