$BTC
Bitcoin Halving History !!
In 2009, when the blockchain went live, the block reward was 50 BTC.In November 2012, at a block height of 210,000, the reward was reduced by half to 25 BTC.In July 2016, at a block height of 420,000, the reward was further reduced to 12.5 BTC.In May 2020, at a block height of 630,000, the reward was cut again to 6.25 BTC.In April 2024, at a block height of 840,000, the next BTC halving is expected to take place !!
How Does Halving Work?
The bitcoin cryptocurrency was designed with a cap on its circulating supply of 21 million coins. The 210,000-block cycle is an integral part of Bitcoin’s design and is hardcoded into its protocol. Given that the average time to mine a block is approximately 10 minutes, this translates to a halving roughly every four years !!
The reduction in block rewards directly impacts the incentives for miners. As the reward is halved, miners receive fewer bitcoins for their efforts !!
How Do Halvings Affect Crypto Prices?
As prices for cryptocurrency coins are influenced by supply and demand, the reduction in the creation of new coins that come with each halving tends to support higher prices. For instance, the bitcoin halving chart below shows the BTC price has climbed after each of its halvings, and in the period surrounding its most recent halving, it soared from $5,000 in March 2020 to over $60,000 a year later !!
Will Bitcoin go up after halving?
Previous instances have established a precedent for price increases; in the months following each of the three past halvings, the asset has appreciated considerably. The last halving, which occurred in May 2020, saw the cryptocurrency add $2,000 to its value in the proceeding three months !!
