Halvening is coming up and there seems to be a lot of confusing around what this will be doing to Bitcoin, and in particular the hash rate. On first sight this indeed looks like a complex problem, because the bitcoin mining community is a complex system, and the difficulty adjustment introduces a feedback loop the impact of which can be somewhat hard to understand. Fortunaly microeconomics has just the toolkit we need, in the form of the supply/demand analysis, to cut through all this complexity and to understand what will be going on.
