What is the Bitcoin (BTC) halving ?
The first point I’d like to clarify is that the term “Bitcoin halving” does not indicate a bitcoin halve in value, or that the price will be cut in half.
In crypto, halving (sometimes referred to as “halvening”) refers to the number of tokens or coins that a miner receives for adding new transactions to the blockchain (i.e. reward for mining new blocks) being cut in half.
While there are many cryptos that experience a halving event, including Bitcoin Cash, Horizen & Litecoin, not all do. However, the most discussed halving in the media is that of the Bitcoin block reward halving.
In the case of Bitcoin (BTC), halvings occur once every 210,000 blocks. Currently, one block on the Bitcoin blockchain takes approximately 10 minutes to complete. Therefore Bitcoin halvings will happen roughly every four years. These halvings are built into the Bitcoin code and will continue until the network has generated the maximum supply of 21 million Bitcoins.
The current BTC block reward, after the last halving which occurred in 2020, is 6.25 Bitcoins per block (i.e. 6.25 new Bitcoin per block, paid to the miners for mining Bitcoin).
Bitcoin halving dates and price – History & Future
Below is a table of historic and future Bitcoin halving dates, block number and block reward changes.
First eight halving dates for Bitcoin (BTC) – Please note this is not an exhaustive list.
As discussed above, Bitcoin halvings happen every 210,000 blocks until approximately the year 2140, when all 21 million bitcoins will have been mined. However, as you can see from the table above, over 98% will be mined and in circulation by 2028.
When is the next Bitcoin halving? (Hint: April 2024)
As at the time of writing, the next bitcoin halving date, the fourth, will happen on BTC block number 840,000. This halving is expected to occur between the 18th to 25th April 2024.
At this time, Bitcoin miners will see their rewards for processing transactions and securing the Bitcoin network reduced to 3.125 Bitcoins per block. This reduction in new Bitcoins supplied to miners sounds like a bad proposition. However the alternate side is that supply is increasing at a lower rate, at a time where demand is on average increasing, over the four year halving cycle, as the technology progresses closer to mainstream adoption.
The net effect during prior halving cycles has been an increase in the Bitcoin price (see chart below). This is of course never a guarantee and past results may not be indicative of future results, especially given how volatile the Cryptocurrency market/prices are.
BTC halving price prediction
Historically there has been a significant increase in the price of Bitcoin (BTC) between each Bitcoin halving event (around a four year period give or take a little).
BTC price was US$12.35 on the day of the first halving in 2012
BTC price was US$650.53 on the day of the second halving in 2016
BTC price was US$8,821.42 on the day of the third halving in 2020 (Currently the last Bitcoin halving)
Where will Bitcoin’s price be on the day of the fourth halving in April 2024?
The 2024 Bitcoin halving countdown has begun, so please leave your Bitcoin price predictions for the next halving in 2024. We will update this article after the next halving of Bitcoin with the winner who is closest 🙂
Return on investment (ROI) based on halvings
Disclamier
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