The Bitcoin halving, also known as the halvening, is a significant event in the world of cryptocurrency. It occurs approximately every four years and has a profound impact on the supply of new bitcoins. In this article, we’ll explore what the halving is, its historical significance, and how it affects miners and investors. Buckle up as we prepare for the next supply shock!
What Is the Bitcoin Halving?
New bitcoins are issued by the Bitcoin network every 10 minutes. For the first four years of Bitcoin’s existence, the amount of new bitcoins issued every 10 minutes was 50 BTC. However, every four years, this number is cut in half. The day the amount halves is called a “halving” or “halvening.”
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In the 2012 halving, the amount of new bitcoins issued every 10 minutes dropped from 50 BTC to 25 BTC.
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In the 2016 halving, it further decreased from 25 BTC to 12.5 BTC.
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In the most recent May 11, 2020 halving, the reward dropped from 12.5 BTC to 6.25 BTC per block.
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Looking ahead, the 2024 halving will reduce the reward from 6.25 BTC per block to 3.125 BTC.
Read more: Understanding Bitcoin Halving
Significance of the Bitcoin Block Halving
The halving decreases the amount of new bitcoins generated per block. This reduction in supply makes buying bitcoins more expensive. In traditional markets, lower supply with steady demand usually leads to higher prices. Consequently, the halving has historically preceded some of Bitcoin’s largest price surges.
Bitcoin Halving Schedule
The Bitcoin halving is scheduled based on block height, not a specific date. Specifically, the halving occurs every 210,000 blocks. The upcoming 2024 halving is projected to happen at block 840,000. Miners, who play a crucial role in the network, adjust their strategies accordingly during these events.
Miners and the Halving
Contrary to popular speculation, most miners are savvy and price in the halving well in advance. They adapt their operations to account for the reduced block rewards. As a result, we don’t typically see widespread shutdowns of mining operations after a halving.
Countdown to the 2024 Bitcoin Halving
The 2024 halving is expected to occur in April 2024, although there’s a small chance it might happen in either March or May. The crypto community is buzzing with anticipation as we approach this pivotal event. Brace yourselves for the next supply shock!