Despite how halving increases the price of bitcoin to make it more profitable to investors, I'm wondering if it will not lead to devaluing of the currency in every four years? Will the effect of these not be inflation of bitcoin in every four years? I'm quit new in bitcoin, and I might be wrong, but I think that as halving continues to occur, bitcoin value might start to diminish gradually. And will it not negatively affect the purchasing power of bitcoin, in making payments for goods and services? I stand to be corrected.
The bitcoin halving event next year alone is not going to lead to large price jumps. We have seen it in the past where after the halvings, where prices didn't move that much or even went lower. The problem is that if all investors expect prices to jump at a certain date and plan to take profits afterwards, then the expectations of the market is not going to meet reality. Who would be buying all these coins at a high price when the majority of investors want to take profits? This will lead to a price drop as investors compete to get out of bitcoins, or to realisation that it's not a good time to sell and people will keep holding their coins. That is why I would recommend not to get expectations too high as it could only lead to headaches. You seem to already expects for prices to drop, but why should the purchasing power of bitcoin drop? All the investors who already hold bitcoins will see an increase in the value of their holdings long term. After the halving of bitcoins, the price has to increase eventually, because all the miners now get less profits and might not distribute any new coins. If prices are too low to cover the cost and revenues of the miners, they will just hold on to their coins until prices rise. That is why the long term trend of bitcoin will remain positive and it's just a matter of time for the price to move up again.