{"id":3917,"date":"2020-04-28T21:15:39","date_gmt":"2020-04-28T21:15:39","guid":{"rendered":"https:\/\/atozcrypto.org\/?p=3917"},"modified":"2020-04-28T21:15:39","modified_gmt":"2020-04-28T21:15:39","slug":"bitcoin-halving-2020-explained","status":"publish","type":"post","link":"https:\/\/atozcrypto.org\/bitcoin-halving-2020-explained\/","title":{"rendered":"Bitcoin Halving 2020 Explained…"},"content":{"rendered":"

What is the Bitcoin Halving (Halvening)?<\/h2>\n

New bitcoins are issued by the Bitcoin network every 10 minutes. For the first four years of Bitcoin’s existence, the amount of new bitcoins issued every 10 minutes was 50. Every four years, this number is cut in half. The day the amount halves is called a “halving” or “halvening”.<\/p>\n

In 2012, the amount of new bitcoins issued every 10 minutes dropped from 50 bitcoins to 25. In 2016, it dropped from 25 to 12.5. Now, in the 2020 halving, it will drop from 12.5 to 6.25.<\/p>\n

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What is the Significance of the Bitcoin Block Halving?<\/h2>\n

The halving decreases the amount of new bitcoins generated per block. This means the supply of new bitcoins is lower.<\/p>\n

In normal markets, lower supply with steady demand usually leads to higher prices. Since the halving reduces the supply of new bitcoins, and demand usually remains steady, the halving has usually preceded some of Bitcoin’s\u00a0largest runs<\/a>.<\/p>\n

In the image below, the vertical green lines indicate the previous two halvings (2012-11-28 and 2016-7-9<\/a>). Note how the price has jumped significantly after each halving.<\/p>\n

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Bitcoin Halving Chart<\/h2>\n

In the image below, you can see Bitcoin’s inflation rate during each period.<\/p>\n

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Each halving lowers Bitcoin’s inflation rate. The orange line is Bitcoin’s inflation rate during a given period, while the blue line is the total number of bitcoins issued.<\/p>\n

Bitcoin Halving Schedule<\/h2>\n

The Bitcoin halving is scheduled in block height, not date.<\/p>\n

The halving happens every 210,000 blocks. The 2020 halving will happen on block 630,000. The 2024 halving will happen at block 840,000.<\/p>\n

What Happens to Miners During Halvings?<\/h2>\n

Many\u00a0always speculate<\/a>\u00a0that\u00a0miners<\/a>\u00a0will shut down after the halving. The reality is most miners are very smart and price in the halving, so they don’t end up shutting down any miners.<\/p>\n

When is the 2024 Bitcoin Halving?<\/h2>\n

The 2024 halving will likely occur between March 2024 and June 2024.<\/p>\n

Bitcoin Halving Dates History<\/h2>\n

This section will take a look at the previous two halvings.<\/p>\n

2012 Halving<\/h2>\n

The 2012 block halving was the first halving and happened on November 28th, 2012. The halving block was mined by SlushPool by someone using a Radeon HD 5800 miner.<\/p>\n

    \n
  • New BTC Per Block Before:<\/b>\u00a050 BTC per block<\/li>\n
  • New BTC Per Block After:<\/b>\u00a025 BTC per block<\/li>\n
  • Price on Halving Day:<\/b>\u00a0$12.35<\/li>\n
  • Price 150 Days Later:<\/b>\u00a0$127.00<\/li>\n<\/ul>\n

    2016 Halving<\/h2>\n

    The second halving occurred on July 9th, 2016.<\/p>\n

      \n
    • New BTC Per Block Before:<\/b>\u00a025 BTC per block<\/li>\n
    • New BTC Per Block After:<\/b>\u00a012.5 BTC per block<\/li>\n
    • Price on Halving Day:<\/b>\u00a0$650.63<\/li>\n
    • Price 150 Days Later:<\/b>\u00a0$758.81<\/li>\n<\/ul>\n

      Current Bitcoin Block Subsidy<\/h2>\n

      The current Bitcoin block subsidy is 12.5 bitcoins per block. When block 630,000 is hit in 2020, the subsidy will drop to 6.25 bitcoins (BTC) per block.<\/p>\n

      Bitcoin Halving Parties<\/h2>\n

      Thousands of Bitcoiners across the world celebrated the 2016 halving. There were parties in tons of major cities like Buenos Aires, Melbourne, Montreal, Paris, Athens, Dublin and dozens of other cities.<\/p>\n

      Here is a video from the 2016 HODL halving party in Tel Aviv:<\/p>\n