Post
Topic
Board Bitcoin Discussion
Merits 2 from 1 user
Re: Bitcoin Halving 2020 | Bitcoin Halving Explained
by
odolvlobo
on 02/06/2019, 06:00:40 UTC
⭐ Merited by Carlton Banks (2)
Logically, the price has to increase with the halving right?

Halving basically reduces the reward to the miners. If miners are rewarded less then there can be reduction of miners due to maintanince cost and other reasons which in-turn may increase the congestion.
Also, the price increases as the supply is less and demand is more. Halving by halving the supply reduces and demand increases thus, the price hash to increase.

Those are common misunderstandings.

The number of miners does not affect the backlog of transactions because the difficulty self-adjusts every two weeks.

Halving does not halve the supply. It halves the production. The supply of bitcoins continues to rise as the total number of bitcoins approaches 21 million.