Bitcoin Rises, But What Will Happen in July at the Halving?

Bitcoin Rises, But What Will Happen in July at the Halving?

Bitcoin halving

Bitcoin is back up! Since our last price piece and Ether’s rise to the top with arguably the largest crowdsale in history, bitcoin has grown by about $9 in price and is getting people excited once again.

Also read: Ether to Blame for Bitcoin’s Decline?

As with all ascensions, bitcoin enthusiasts are coming out of the dark with smiles on their faces and happily telling skeptics, “We told you so.” For a while, it appeared as if Ethereum was going hog the spotlight. A crowdfunding campaign that manages to raise nearly $200 million is certainly something worth noting, but in the end, bitcoin couldn’t be kept down.

How Will Bitcoin Fare Heading Into the Halving?

But how long will it last? As one source states, bitcoin production is scheduled to be cut in half starting in July. Naturally, this is bound to affect the price, but in what way, and by how much?

Some say the sky’s the limit. According to Gil Luria, a Webbush Securities analyst who covers the Bitcoin investment vehicle GBTC:

“There’s always a lot of factors in the price of Bitcoin, but all those things being equal, [the halving] should help the price go up, if for no other reason than of the rule of economics… It’s a function of the intersection of supply and demand, and the halving literally means there will be less [new] supply every day.”

Bitcoin moonIn other words, this could be just the thing bitcoin needs to stay on top for good. After all, a scarce item is likely to hold more value than one that is plentiful or common.

But others aren’t entirely convinced. In fact, one of the big problems expected from the halving is the fact that miners will possibly have to deal with potential drops in profitability.

Miners are responsible for keeping transactions going on the blockchain. Often, these miners receive incentives based on the number of transactions they oversee. With fewer transactions set to take place, you can bet some of those incentives will disappear, which could ultimately lead to a disgruntled work environment among present members of the digital mining sector. Unless the bitcoin price doubles in a short time, bitcoin miners could see quick and massive drops in revenue.

Furthermore, if miners become fed up with the lack of financial security and exit the mining arena permanently, we’re likely to see blockchain security compromised over time. The primary fear is that transaction limits will be hit, leading to lost faith and ultimately, the coin’s final days.

While thoughts are running wild, one thing can be labeled as marginally true, at least for the time being: we don’t know what’s going to happen. Whether bitcoin doubles in price or doesn’t go anywhere at all, there’s no way to predict where digital finance will go. The halving is on its way, and there’s not much we can do to stop it. What we can do, however, is accept the changes that are likely to occur starting mid-July, and do our best to adapt and keep our favorite digital coin (and ourselves) afloat.

What do you foresee happening when the halving takes place? Post your comments below!

Images courtesy of,

Nick Marinoff

  • anish sharma

    So tomorrow if by chance another crypto currency comes that makes transactions instant bitcoins will be dead, bitcoins take too much time to propagate and this time will only increase as the volume of transactions goes up. People have lost bitcoins worth hundreds of millions in scams, don’t be stupid and avoid bitcoins, the transactions too are costly, the wallets have errors and sometimes the bitcoins disappear and with no one to complain to you are the scape goat.

    Also think about if tomorrow a new kind of vulnerability comes and no one wants bitcoins or accepts them as payment then what will happen, your money will turn into dust. Be wise stay with currency that has survived ages not something that can evaporate in air, bitcoin is a bubble and when the bubble bursts your hard earned money to will burst like a dream.

    Of course bitcoins are rising but remember bitcoins rose from dirt to over 1000 dollars a piece then fell down to less then 250 dollars, can you withstand over 50% fluctuations in price?

    People have had millions of bitcoins in Gox and other exchanges only to be told that sorry our servers got hacked, do you want to be in that scenario, even small amounts of bitcoins in private cold stoarge or your personal pc will take hundreds of GB’s of space and will render it incapable to do anything else, why to get so hassled.

    The amount of resources gobbled by bitcoin servers and networks are massive, and people are losing money on it, they won’t do it for free. Even a single dollar worth of bitcoins to propagate across the whole network will take at least 2 dollar of resources, and this is unsutainable, bitcoins could be worth it 20 years from now when the networks and hdd spaces are irrelevant but till that time bitcoins are a waste.

    Remember the VP of bicoin died a gory death and satoshi was behind it, so many people can go after you if you have stored mass amount of bitcoins and no one will know, you will be the target of hackers if you own significant bitcoins, they will kidnap you and hold you for ransom until you give them bitcoins by transferring and then kill you it has happened in the past, dont be foolish invest in regulated currency that has backing from your local government.

  • hcg2007

    “… It’s a function of the intersection of supply and demand, and the halving
    literally means there will be less [new] supply every day.”

    Gil Luria is confused and certainly not someone I would ask for investment advice. There is MORE supply every day, even if the “new” supply is less.

  • StoneAge

    agreed – the total number of coins is still going up. But only by half as much. This is a mimicking of the mining process in that the more of a limited resource is found and “dug up” the less there is to find, making mining more difficult and well, more expensive.
    Because of that – the supply of coins is less, not necessarily the number of coins available.
    History has shown that at previous halvings, Bitcoin has basically doubled in Federal reserve Note Value.

  • StoneAge

    Sounds Shillish to me. I don’t know of any government currency that has EVER survived, long term. Only currencies that have are gold and silver and they are not tied (necessaily) to any government.

    Anything central bank related has failed time and time again. Read your financial history and learn about it. The Federal Reserve is the longest lasting one so far, but it is on it’s way out as they are not liquid. Their own books say they have less than 1% real money toback up the cash and digital blips that are out there. It’s even worse for the US government with a net worth rating in the negative by 60+ billion.

    Government currencies are only a representation of how much real money they OWE YOU. DEBT based, not value based. Debt has never solved anything.

  • hcg2007

    “Because of that – the supply of coins is less”

    You and Gil are confusing production with supply. The supply is the coins available, not the rate at which coins are produced. The supply increases with every block whether the subsidy is 25 BTC or 12.5 BTC.

    “History has shown…”

    There has only been one previous Bitcoin halving, so “history has shown” seems like an exaggeration. Anyway, the price was flat for two months after the first halving up to the start of the Cyprus bubble. At Litecoin’s first halving last year, a speculative bubble popped and the price fell, but then it remained flat until recently. If anything, history has shown that the halving has no direct effect on the price.

  • Jags Kandola

    The value is in the block chain, understand the potential of a trust network. Your home door opens as you arrive, the lease to the house isn’t on a piece of paper, but on a network verified by billions.

    More to the point, Bitcoin experienced an increase at the previous halving, Litecoin did not. Litecoin is also a spelling mistake and Bitcoin is not, Bitcoin is serious, Litecoin was always a bubble. Intuition suggests a price increase, but how much is the market actually influenced. Still too malleable.

  • rjf

    What are you smoking? When you get a minute, go lookup some facts. And while your at it, go tell your handlers that, yes, you are an idiot and, no you can’t even shill well. Moron…