What’s the Bitcoin Halving?
New Bitcoins are issued by the Bitcoin network every 10 minutes. For the very first four years of Bitcoin’s existence, the quantity of new bitcoins issued every 10 minutes was 50. Every four years, this number is cut in half. The day that the quantity halves is known as a “halving “.
In 2012, the quantity of new bitcoins issued every 10 minutes dropped from 50 bitcoins to 25. In 2016, it dropped from 25 to 12.5. Now, in the 2020 halving, it’ll drop from 12.5 to 6.25.
What’s the Significance of the Bitcoin Block Halving?
The halving decreases the quantity of new Bitcoins generated per block. What this means is the way to obtain new bitcoins is lower.
In normal markets, lower supply with steady demand usually leads to raised prices. Considering that the halving reduces the way to obtain new bitcoins, and demand usually remains steady, the halving has usually preceded a number of Bitcoin’s largest bull runs.
In the image below, the vertical green lines indicate the prior two halvings (2012-11-28 and 2016-7-9). Note how the cost has jumped significantly after each and every halving.
|Bitcoin Halving Chart|
In the image below, you can see Bitcoin’s inflation rate during each period.
Each halving lowers Bitcoin’s inflation rate. The orange line is Bitcoin’s inflation rate during certain period, as the blue line is the sum total amount of bitcoins issued.
Bitcoin Halving Schedule
The Bitcoin halving is scheduled in block height, not date.
The halving happens every 210,000 blocks. The 2020 halving will happen on block 630,000. The 2024 halving will happen at block 840,000.
What Happens to Miners During Halvings?
Many always speculate that miners will turn off following the halving. The truth is most miners are extremely smart and price in the halving, so they do not find yourself turning off any miners.
When may be the Next Bitcoin Halving, following the 2020 Halving?
The 2024 halving will more than likely occur between March 2024 and June 2024.
Bitcoin Halving History
This section will have a go through the previous two halvings.
2012 Bitcoin Halving
The 2012 block halving was the first halving. It was mined by SlushPool by someone 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: ₦1,948.07 ($12.3)
Price 150 Days Later: ₦20,032.85 ($127.00)
2016 Bitcoin Halving
The 2016 was the second one ever.
New BTC Per Block Before: 25 BTC per block
New BTC Per Block After: 12.5 BTC per block
Price on Halving Day: ₦195,795.38 ($650.63)
Price 150 Days Later: ₦227,643 ($758.81)
Current Bitcoin Block Subsidy
The present Bitcoin block subsidy is 12.5 bitcoins per block. When block 630,000 is hit in 2020, the subsidy will drop to 6.25 bitcoins (BTC) per block.
Bitcoin Halving Parties
Tens of thousands of Bitcoiners across the entire world celebrated the 2016 halving. There were parties in a lot of major cities like Buenos Aires, Melbourne, Montreal, Paris, Athens, Dublin and lots of other cities.