What is the Bitcoin Halving?
Halving 1 Genesis Block Jan 3, 2009 BTC halving Date
Halving 2 210,000 Block Height Nov 28, 2012 BTC halving Date
Halving 3 420,000 Block Height July 9, 2016 BTC halving Date
Halving 4 630,000 Block Height May 11, 2020 BTC halving Date
Halving 5 840,000 Block Height 2024 ______ BTC halving Date
The Bitcoin Halving, also known as the "Halvening," is a programmed occurrence in the Bitcoin protocol that occurs every 210,000 blocks, approximately every four years. It reduces the reward that miners receive for verifying blockchain transactions. This process is intended to manage the creation of new bitcoins and uphold their scarcity, thereby ensuring a limited BTC supply.
Essentially, the halving halves the BTC rewards granted to miners. In the original Bitcoin whitepaper released by the pseudonymous Satoshi Nakamoto in 2008, it was stipulated that there would be a fixed supply of 21 million bitcoins. This fixed supply mechanism was implemented to prevent inflation and emulate the scarcity of precious metals such as gold. By controlling the pace at which new bitcoins are produced, the protocol strives to establish a deflationary currency with the potential to maintain or increase its value over time.
Therefore, the Halving plays a crucial role in regulating the pace at which new bitcoins enter circulation, progressively slowing down the generation of new coins. When Bitcoin was initially introduced in 2009, miners were rewarded with 50 BTC for each block they successfully added to the blockchain. The first Halving event occurred in 2012, reducing the block reward to 25 BTC. Subsequent Halvings in 2016 and 2020 further decreased the reward to 12.5 and 6.25 bitcoins, respectively. The upcoming Bitcoin Halving will reduce the block reward to 3.125 BTC and is anticipated to take place in April 2024 (when the block height reaches 840,000).
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