Bitcoin halving is a significant event in the cryptocurrency market. This event influences the price of Bitcoin that’s why it is important to know when is the next halving happening. Let’s find out in this article.
When is the Next Bitcoin Halving?
The next Bitcoin halving is predicted to take place in March 2024. It’s hard to pinpoint the exact date, but as Bitcoin halvings typically happen every four years, we may assume that the next one will take place in 2024.
When Will the Last Bitcoin Halving Happen?
According to estimates, the last Bitcoin halving will occur in 2140. The last Bitcoin of the 21 million Bitcoin supply will be mined at this time as well.
What is the Bitcoin Halving History?
Three halving events have occurred for Bitcoin since it was first developed and released in 2009. The first-ever halving of Bitcoin took place on November 28, 2012. The second one was carried out on July 9, 2016. The date of the most recent Bitcoin halving was May 11, 2020.
What is Bitcoin Halving?
Now that you are aware of the anticipated date of the next Bitcoin halving, it is important to know the process more closely to understand the importance of these halvings.
Bitcoin halving is a phenomenon in which the mining rewards are halved. Consequently, the rate at which new Bitcoins are produced is cut in half. To put it in an equation:
Bitcoin halving = BTC mining rewards get cut in half = half the supply of new BTC coming into the market.
Today, there are more than 19 million Bitcoins in use. Less than 2 million Bitcoin remain to be mined, as there will only be 21 million Bitcoin in total. But these 2 million Bitcoins won’t be mined for another hundred years because of the BTC halving.
You must first grasp the workings of Bitcoin’s blockchain to fully understand the halving process.
Bitcoin’s Blockchain & Proof-of-Work
As you’re searching for Bitcoin halving dates, you most likely already know that the cryptocurrency is based on a special kind of technology called “the blockchain”.
A blockchain is essentially a digital ledger, or database, that holds data. This data is available in the form of transactions for Bitcoin and other cryptocurrencies. Blocks containing transactional data are arranged chronologically so that the dates of every transaction are visible. It also helps in avoiding controversial situations like double-spending.
There are a fixed number of transactions in each block. A validation process is necessary to verify the legitimacy of the transactions. That’s where miner comes in who are responsible for the validation of the transaction. They are the ones who are mostly concerned with the next Bitcoin halving dates.
Miners utilize high-tech mining devices to verify the transactions occurring on the blockchain. The computers (machines) solve extremely difficult mathematical puzzles to accomplish these verifications. As soon as the puzzle gets solved, the miner gets Bitcoin as a reward.
This procedure is known as “Proof-of-Work”. However, how is any of that related to the dates of the Bitcoin halving?
How Does Bitcoin Halving Work?
The incentives that miners receive and the quantity of Bitcoin produced are cut in half depending on the Bitcoin halving schedule, which is predicted to occur roughly every four years. As of right now, the halving (and mining reward) timeline looks like this:
- 2009 (the creation of Bitcoin) – 50 BTC
- 2012 – 25 BTC
- 2016 – 12.5 BTC
- 2020 – 6.25 BTC
- 2024 (the next Bitcoin halving) – 3.125 BTC
- 2028 – …
Thus, in 2009, miners would get paid 50 BTC for validating a block, over time this process has grown much more competitive and challenging, and the rewards have also decreased dramatically.
The Bitcoin halving process is essentially a procedure incorporated into the code of Bitcoin during its development. The intention behind this is to inflate the cryptocurrency’s price artificially.
The cycle of Bitcoin halving occurs every 210,000 blocks that are mined. Given that it takes nine to ten minutes on average to mine a single block, each halving will occur after about four years.
The fact that mining Bitcoin gets harder should inevitably cause its price to rise dramatically, assuming that its widespread adoption will continue to expand.
How Does Bitcoin Halvings Affect the Price of BTC?
The price of BTC is one of the reasons why Bitcoin halving dates are so highly awaited.
The price of this specific cryptocurrency asset rises around and after each halving date of BTC; at least, this has been the case for the three halvings that have already taken place in the history of Bitcoin.
In 2012, before the initial halving, the price of Bitcoin was about $12. After the initial halving, the asset reached its highest price of more than $1,200.
The price of Bitcoin was approximately $650 before the second halving. After the market began to feel bullish and the halving took place, the price of Bitcoin eventually rose to nearly $19,000! Then came the Crypto Winter, which caused a sharp decline in the value of all cryptocurrencies. At its lowest, BTC was trading for less than $4,000.
The price of Bitcoin was approximately $9,000 before the most recent halving in 2020. After halving, the price of Bitcoin hit a record high of $67,549 before crashing to about $20,000 and remained there for some time.
However, this doesn’t eliminate the reality that BTC halvings do influence fluctuations in the price of Bitcoin. We’ll have to wait and see whether this pattern holds for the upcoming Bitcoin halving dates, although these events are highly anticipated.
How Miners Are Preparing for Bitcoin Halving 2024?
Miners are adopting tactics including efficiency, sustainability, diversified revenue, risk management, and cooperation as the 2024 Bitcoin halving is approaching. The measures mentioned above aim to reduce the effects of halving events and promote profitability and innovation in the mining sector.
Conclusion
Okay, so you know everything there is to know about the halving of Bitcoin! We’ve covered every significant detail there is to know about the phenomena, whether it be historical Bitcoin halving incidents, upcoming BTC halving dates, or any theoretical details in between. We hope that your all doubts are cleared regarding the Bitcoin halving.
