What is Bitcoin Halving?
The Bitcoin halving is also called the bitcoin block reward halving, where the mining reward of each new block halves about every four years. This means that the reward of each newly mined block is cut in half after the halving. When Bitcoin came into existence in 2009, its block reward was 50 BTC. The block reward halves about every four years based on block time and will eventually reach its finite total supply of 21 million. So far, Bitcoin has had two halvings; one in November 2012 and one in July 2016, respectively. The upcoming third halving is estimated to take place in May 2020. By that time, the reward will decreases from 12.5 to 6.25 BTC.
So far, Bitcoin has had three halving in November 2012 and July 2016 and May 2020 respectively. The four upcoming halving is estimated in May 2024. By that time, the reward will decreases from 6.25 to 3.125 BTC.
Why does Bitcoin halve?
According to supply and demand theory, if a commodity does not limit its supply in circulation, excessive supply will occur, and its price will fall. This concept applies to bitcoin too. Using halving to limit its amount and circulation can increase scarcity and make it more valuable. The block reward of Bitcoin is programmed to cut in half every 210,00 blocks, which can slow down the inflation rate and allow new coins to enter into circulation in a controlled manner. Bitcoin halving is also a distinct feature that sets it apart from traditional fiat currencies.
Historical Bitcoin halving schedule
Satoshi Nakamoto published “A Peer-to-Peer Electronic Cash System” and introduced the concept of Bitcoin for the first time.
Satoshi Nakamoto mined the genesis block and marked that bitcoin came into existence. At that time, the block reward was 50 BTC.
Satoshi Nakamoto stipulated that Bitcoin halves every 21 0,000 blocks, until all the 21 million bitcoin have been mined, estimated to take place in the year 2040.
First Bitcoin halving. The block reward was reduced to 25 BTC
Second Bitcoin halving. The block reward was reduced to 12.5 BTC
Third Bitcoin halving. The block reward was reduced to 6.25 BTC
The upcoming (four) halving is estimated to take place in May, 2024. This means that after this halving, the block reward will be 3.125 BTC.
Halving Schedule in 2020
|Coin||Consensus mechanism||Estimated time||Halving No||Current block reward||Reward after halving||Inflation rate after halving(2020-02-13)|
|ETC||PoW||2020-03-17（Halved）||First halve||4||3.2（Reduced by20%，not in half）（Current）||6.57%|
|DASH||PoW+PoS||2020-05||First halve||3.6||3.34（Reduced by 7.14%，not in half）||7.24%|
|Sero(sero)||PoW+PoS||2020-04-14（Halved）||First halve||Details||Block reward will decrease from 35.6 to 17.8（Current）||51.28%|
|BCD||PoW||2020-07-29 01:41:26||First halve||125||62.5||1.76%|
Trend of historic Bitcoin price and cost of hash power after halvings
Trend chart of Bitcion circulation and mining reward
Trend of Bitcoin future halvings and yearly inflation rates
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