What does Bitcoin Halving (Halvening) mean?
The Bitcoin network issues new bitcoins every 10 minutes. Initially, for the first four years of Bitcoin's existence, the number of newly issued bitcoins every 10 minutes was 50. However, this amount gets halved approximately every four years. The day when the quantity is reduced by half is referred to as a "halving" or "halvening." In 2012, the issuance of new bitcoins every 10 minutes decreased from 50 bitcoins to 25. Then in 2016, it further decreased from 25 to 12.5. In the most recent halving that took place on May 11, 2020, the reward dropped from 12.5 to 6.25 BTC per block. During the upcoming 2024 halving, the reward will decrease from 6.25 BTC per block to 3.125 BTC.
Why is Bitcoin Block Halving significant?
The halving reduces the number of new bitcoins generated per block. Consequently, the supply of new bitcoins diminishes, leading to an increase in their market value. In traditional markets, when supply decreases while demand remains steady, prices tend to rise. Similarly, Bitcoin's halving has historically preceded significant price surges, as demonstrated by the notable price increases that followed the previous three halvings.
Bitcoin Halving Schedule
The timing of Bitcoin halving is determined by block height rather than a specific date. Halving occurs approximately every 210,000 blocks. The 2024 halving will take place at block 840,000. What happens to miners during halvings? Speculation often arises about miners shutting down after a halving. However, most miners are knowledgeable about the halving and anticipate it in their operations, thereby avoiding the need to shut down any mining activities.
When will the 2024 Bitcoin Halving occur?
The 2024 halving is projected to happen between February 2024 and June 2024.
Bitcoin Halving Dates History
Let's examine the details of the two previous halvings:
2012 Halving
The first halving occurred on November 28th, 2012. The halving block was mined by SlushPool, using a Radeon HD 5800 miner.
New BTC Per Block Before: 50 BTC per block
New BTC Per Block After: 25 BTC per block
Price on Halving Day: $12.35
Price 150 Days Later: $127.00
2016 Halving
The second halving occurred on July 9th, 2016.
New BTC Per Block Before: 25 BTC per block
New BTC Per Block After: 12.5 BTC per block
Price on Halving Day: $650.63
Price 150 Days Later: $758.81
2020 Halving
The third halving took place on May 11, 2020.
New BTC Per Block Before: 12.5 BTC per block
New BTC Per Block After: 6.25 BTC per block
Price on Halving Day: $8821.42
Price 150 Days Later: $10,943.00
Current Bitcoin Block Subsidy
At present, the Bitcoin block subsidy is 6.25 bitcoins per block. When block 840,000 is reached in 2024, the subsidy will decrease to 3.125 bitcoins (BTC) per block.
Bitcoin Halving Parties Bitcoiners worldwide celebrated the 2016 halving with numerous parties in major cities such as Melbourne, Australia; Montreal, Canada; NYC, USA; London, UK; Dublin, Paris, and many others.
When will all 21 million bitcoins be mined?
All 21 million bitcoins (BTC) are expected to be mined by 2140. However, more than 98% of them will likely be mined by 2030. Is there an Ethereum Block Reward Halving Countdown? Ethereum's block reward does not undergo halving like Bitcoin, so there is no countdown for it. What is the Bitcoin Clock? The Bitcoin clock has been operational since 2011. Although the domain was allowed to expire in 2018, we have revitalized the site and restored it to its original purpose.
Is the Halving Necessary?
Yes, the halving is necessary. It is an essential mechanism by which Bitcoin regulates its supply. Once the block subsidy expires, miners will be compensated through transaction fees for securing the network.
