What Is Bitcoin Halving?
The Bitcoin Halving takes place about every four years and reduces the block reward by 50%. This lowers the supply of bitcoins entering the market, which increases scarcity and can act to raise its price if market conditions remain the same.
Block rewards are part of the blockchain's automatic process of validating transactions and opening new blocks (called mining). Miners, participants who compete in a race to solve a cryptographic puzzle, are given new bitcoins if they are the first to solve it.
Their block is added to the blockchain, they receive a reward, and the network starts another race. All miners confirm the data in the newly added block while trying to solve the puzzle for their own new blocks, hoping for an ever-decreasing reward.
A Bitcoin halving event occurs about every four years when the reward for mining 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 April 19, 2024, resulting in a block reward of 3.125 BTC.
The final halving is expected to occur in 2140, when the number of bitcoins circulating will reach its maximum supply of 21 million.
Is Bitcoin Halving a Good Thing?
There are several reasons Bitcoin halvings are considered by many to be good for bitcoin's ecosystem and market value. For others, it might not be such a good thing.
The Bitcoin Halving is intended to counter any inflationary effects on Bitcoin by lowering the reward amount and maintaining scarcity. However, this inflation "protection" mechanism does not protect Bitcoin users from the inflationary effects of the fiat currency to which it must be converted to be used in an economy.
Gains made regarding market value might offer inflation protection for investors, but they don't for the cryptocurrency's intended use as a payment
What Are the Bitcoin Halving Dates?
Nov. 28, 2012, to 25 bitcoins
July 9, 2016, to 12.5 bitcoins
May 11, 2020, to 6.25 bitcoins
April 19, 2024, to 3.125 bitcoins
Mid-2028, to 1.5625 bitcoins
