What Is Bitcoin Halving

The Bitcoin #Halving is when Bitcoin's mining reward is split in half. It takes the blockchain network about four years to open 210,000 more blocks, a standard set by the blockchain's creators to continuously reduce the rate at which the cryptocurrency is introduced.

The first reward was 50 bitcoin. Previous halving dates were:

Nov. 28, 2012, to 25 bitcoins

July 9, 2016, to 12.5 bitcoins

May 11, 2020, to 6.25 bitcoins

The next halving is expected to occur in April 2024, when the block reward will fall to 3.125 BTC.

As of March 2024, about 19.65 million bitcoins were in circulation, leaving just around 1.35 million to be released via mining rewards.1

KEY TAKEAWAYS

A Bitcoin #Halving event occurs when the reward for mining Bitcoin transactions is cut in half.

#Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply.

Bitcoin last halved on May 11, 2020, resulting in a block reward of 6.25 BTC.

The final halving is expected to occur in 2140, when the number of bitcoins circulating will reach the theoretical maximum supply of 21 million.

Basics of the Bitcoin Network

To understand a Bitcoin halving, you must first know how the Bitcoin network operates.

Why Are the #Halvings Occurring Less Than Every 4 Years?

The Bitcoin mining algorithm is set with a target of finding new blocks once every 10 minutes.7 Some blocks take more than 10 minutes; some take less. This can decrease or increase the amount of time it takes to reach the next halving goal. For example, if blocks consecutively average 9.66 minutes to mine, it would take about 1,409 days to mine the 210,000 blocks required (four years is 1461 days, including one day for a leap year).

What Happens When There Are No More Bitcoins Left?

It is often thought that in 2140, the last bitcoin will be mined. However, if the reward is #halved every 210,000 blocks, it will get smaller and smaller until one satoshi is the reward and the total amount circulating equals 21 million. One satoshi is 0.00000001 bitcoin.

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