Quote from: Pursuer on September 16, 2018, 09:14:43 AM

Quote from: Kakmakr on September 15, 2018, 02:30:38 PM

The halving is a significant event, but people should not only look forward to it, because they know the price will increase when it happens. It is a marvel to admire because Satoshi anticipated that we would need a halving every 4 years to increase the rarity of the coins. I do not think that there are any relationship between the halving and previous spikes in the price. Roll Eyes

I am just happy that we are still receiving a lot of coins to buy and this is something to celebrate.. as time goes by, less coins will be available for people to buy and we will have had a good opportunity to buy coins before all these halvings. Grin

technically speaking halving is not increasing the rarity of bitcoin nor does it reduce the supply. and as time goes by there is more and more coins available for people to buy because the supply is increasing every day and bitcoin is not burning or being destroyed (apart from a small percentage of loss due to loss of private key,...) so even with halving the supply is increasing.

what halving does is that it slows down the process of creating new supply or slows down printing bitcoin. and since a part of sell pressure is from miners selling their new coins, halving reduces that so the price can rise easier in the future after the halving. and that is why everything before halving is pure hype.

The net effect is still essentially the same. As we all know, the price is determined by the balance of supply and demand, and both are dynamic parameters, which means we should consider them as flows rather than some fixed amounts. In this way, halving diminishes supply, and the diminished supply leads to the same effect when bitcoins are becoming more scarce.

Strictly speaking, we can't consider scarcity as some absolute value either, like 21M bitcoins. We should also look at how many people want these bitcoins. In other words, scarcity may increase even with more coins in total as in the case when the demand for coins increases faster than the supply of them.