When is the next Bitcoin Halving Countdown? Here what you need to know.
What is Bitcoin Halving?
The Bitcoin halving can also be called the Bitcoin block reward halving, which means that the reward obtained after the production of a new block is halved approximately every four years.
This means that after the halving, every time a block is produced, the corresponding Bitcoin reward is only half of the reward before the halving.
After Bitcoin came out in 2009, the block reward was 50 bitcoins.
According to the speed of block generation, the reward was halved about every 4 years, and the final total amount was constant at 21 million.
At present, Bitcoin has undergone three halvings, which occurred in November 2012, July 2016 and May 2020.
The fourth Bitcoin halving is expected to take place in May 2024. At that time, Bitcoin will be halved from the current 6.25 to 3.125.
Why is Bitcoin Halving?
According to the law of supply and demand in the market, if the circulation quantity of a certain commodity is not restricted, hyperinflation will easily occur, and the price of the commodity will be greatly reduced.
Likewise, if bitcoins are widely available, their value may decrease.
A block is produced in the Bitcoin network in about 10 minutes, and a certain number of Bitcoins will be dug out continuously.
Setting the Bitcoin reward to be halved every 210,000 blocks can effectively reduce the inflation rate of Bitcoin gradually, thereby preventing the occurrence of hyperinflation.
The block halving is one of the basic differences between Bitcoin and traditional currencies, which reflects the uniqueness of Bitcoin.
Bitcoin Halving Historical Timeline
- 2008 10/31
- Satoshi Nakamoto released “A Peer-to-Peer Electronic Cash System”, the concept of Bitcoin was first proposed.
- Satoshi Nakamoto obtained the first batch of 50 bitcoins through mining, and bitcoin was officially born. At this point, each block is rewarded with 50 bitcoins. Satoshi Nakamoto stipulates that the reward will be halved every time 210,000 blocks are generated, until 2140, when the block reward is 0, all Bitcoins will be issued, and the final total amount will remain constant at 21 million.
- 2012 11/28
- Bitcoin’s first halving. At this point, the bitcoin reward associated with each block is reduced to 25.
- 2016 7/9
- Bitcoin’s second halving. At this point, the bitcoin reward associated with each block is reduced to 12.5
- 2020 May
- Bitcoin halving for the third time. At this time, the bitcoin reward associated with each block is reduced to 6.25
- 2024 May
- Bitcoin is expected to halve for the fourth time in May 2024. This means that the bitcoin reward accompanying each block will be halved to 3.125.