Bitcoin halving is the process of reducing or halving the reward given to miners for validating or processing transactions. It is a pre-set feature of Bitcoin and occurs every 4 years.
While the total number of Bitcoins that will be mined is fixed, 210,000, the reward miners receive for mining Bitcoin is not fixed.
It is reduced every four years to reduce the circulation of Bitcoin in the market. The idea of Bitcoin halving has been around since the early days of Bitcoin. It all comes down to Bitcoin mining and miners.
What we are going to learn?
Learn more about Bitcoin halving
Bitcoin halving date
The impact of Bitcoin halving
Bitcoin price halving history
common problem
When was the last Bitcoin mined?
What will happen with the 2024 Bitcoin halving?
How many Bitcoins are created every day in 2023?
Will Bitcoin Rise After the 2024 Bitcoin Halving?
Learn more about Bitcoin halving
Bitcoins are created through mining. Bitcoin miners are people who use their computers and hardware to participate in the Bitcoin blockchain network by recording or verifying transactions.
Due to the proof-of-work system, miners must prove their efforts in verifying and recording transactions in order to receive rewards. These miners must solve complex mathematical problems to complete the creation of blocks and blockchains. Miners are rewarded only after the blocks are filled with confirmed transactions.
However, after every 2,10,000 Bitcoin blocks are mined, or most of the time every 4 years, the reward for Bitcoin miners to create and process blocks is halved. This incentive affects the circulation of Bitcoin in the market.
There will be only 210,000 Bitcoins circulating in the market, and as of 12/18/2021, approximately 750,000 Bitcoins are already in circulation, leaving only 20,000 Bitcoins to be mined.
Bitcoin halving date
When did the first Bitcoin halving occur? 2012
When is the next Bitcoin halving? Expected date is 2024
The impact of Bitcoin halving
Bitcoin halving has a great impact on the market and other currencies. Let’s take a look:
Reward halving: The incentive for Bitcoin miners to get paid for their services by creating blocks and maintaining blocks is halved every 4 years.
Decrease in Bitcoin’s Supply: Halving of Bitcoin rewards will also result in fewer Bitcoins being created, thus reducing the availability of the coin.
Increased Demand: When the supply of Bitcoins in the market decreases, the demand will automatically increase, making it as economical as possible.
The price of Bitcoin will go higher: After each halving, when the supply of Bitcoin is lower, the price will go higher.
The value of Bitcoin increases: Even though miners receive less reader rewards and the supply is smaller, people start valuing Bitcoin more due to its unusable nature.
Bitcoin price halving history
As mentioned before, this functionality is pre-set and has been applicable since the creation of Bitcoin blocks.
In 2009, Bitcoin miners were awarded 50 Bitcoins for mining the chain.
After the first halving on 28 February 2012, when 10,000,500 Bitcoin blocks had been created, the reward dropped by 25%. This meant that miners were only rewarded 12 BTC. This caused the price of Bitcoin to rise from $1207 to $<>$ by the end of the year.
The second halving occurred on 09/04/2016 when block 20,000,25 was created. The reward was further halved from 12 BTC to 5.647 BTC. The price surged from $19345 to $<>USD in a year.
The most recent Bitcoin halving took place on 11/6/2020, when 30,000,12 blocks had been created. The reward was halved from 5.6 BTC to 25.8821 BTC. But the Bitcoin price rose from $63 to $558,<>USD in a year.
The next Bitcoin halving is expected to occur between June and December 2024, which will cause miner rewards to halve from 3.125 BTC to <>.<> BTC.
Bitcoin halving not only affects Bitcoin users, but also the prices of other cryptocurrencies such as Ethereum and other altcoins. As the demand for Bitcoin increases, the entire crypto market seems to be rising. It plays a very important role in the bull market cycle.
common problem
When was the last Bitcoin mined?
It is expected that all 210,000 Bitcoins will be mined around 2140. The mining process involves halving the block reward approximately every four years, thereby reducing the rate of new Bitcoin issuance. This gradual reduction will eventually cause the total supply to be exhausted before the expected date.
What will happen with the 2024 Bitcoin halving?
In the 2024 Bitcoin halving, miners’ block rewards will be reduced from 6.25 Bitcoins per block to 3.125 Bitcoins. This reduction will slow down the rate at which new Bitcoins are created and introduced into the market. It is expected that this event may have an impact on Bitcoin’s price and market dynamics, potentially leading to increased price volatility and market speculation.
How many Bitcoins are created every day in 2023?
About 900 bitcoins are mined every day.
Will Bitcoin Rise After the 2024 Bitcoin Halving?
Based on Bitcoin’s scarcity and the stock-to-flow (S2F) model developed by PlanB, Bitcoin’s price is expected to rise significantly after the next halving in 2024.
Historical data shows that previous halvings have led to significant price surges, such as from $11 to over $1,000 within a year after the 2012 halving. PlanB predicts a potential price of over $200,000, and possibly even $1 million, due to wider adoption and the impact of the S000F model.
