Halving is the process of reducing miners’ rewards on the Bitcoin network by half. Satoshi Nakamoto built this mechanism into the blockchain when creating it. Bitcoin halvings occur every 210 000 blocks, roughly once every 4 years. The process will continue until all BTC have been mined (21 000 000 BTC, estimated by 2140).
Time until the next Bitcoin halving:
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Why is Bitcoin halving so important?
The main purpose of halving is to control the issuance of new BTC and reduce inflation. This economic model distinguishes Bitcoin from traditional fiat currencies, whose unlimited issuance is controlled by governments and leads to ongoing inflation. Because Bitcoin’s maximum supply is limited, it is often called “digital gold” or a hedge against inflation.
How does halving affect the BTC price?
Historical patterns suggest that a new crypto bull market begins after each halving. However, there is no way to be 100% certain that this effect will last forever. The asset’s percentage gains have declined after successive halvings, and the effect may eventually fade. Nevertheless, reducing the reward benefits the asset by halving new coin issuance and reducing selling pressure from miners.
Halving dates
| Halving | Date | Block | Reward |
|---|---|---|---|
| 0 | 03.01.2009 | 0 | 50 BTC |
| 1 | 28.11.2012 | 210 000 | 25 BTC |
| 2 | 09.07.2016 | 420 000 | 12.5 BTC |
| 3 | 11.05.2020 | 630 000 | 6.25 BTC |
| 4 | 2024 | 840 000 | 3.125 BTC |
| 5 | 2028 | 1 050 000 | 1.5625 |
| 6 | 2032 | 1 360 000 | 0.78125 |
