There are about 18.715.05 billion bitcoins already in circulation as of May 2021. This leaves only 2.284.95 billion still to be released through mining rewards. the next bitcoin halving date will most likely occur in 2024 and could have a dramatic impact on the price of the cryptocurrency.
In this article, we go over everything you need to know about the bitcoin halving, including what it is, the next bitcoin halving date, why it’s happening, and how you can trade it.
Reading: When is the next bitcoin halving
what is the bitcoin halving?
bitcoin halving is an event where the compensation for mining new btc blocks is halved, as a result of which miners receive 50% less btc to authenticate transactions. The bitcoin halving occurs every 210,000 blocks, which translates to roughly every 4 years.
In a nutshell, this is how bitcoin creates false inflation that halves every four years until it is issued and fully used.
how does the bitcoin halving work?
Bitcoin halving works because of its network’s underlying blockchain technology software that dictates the rate at which new bitcoins are created. the software requires computers on the blockchain network to compete to verify transactions known as bitcoin mining.
bitcoin mining rewards miners with several new bitcoins when they can prove that the transactions they have selected are valid. These transactions are verified in groups known as blocks, and the blockchain network is coded to halve the reward miners receive for every 210,000 blocks.
what is the importance of the bitcoin halving?
the bitcoin halving reduces the number of new bitcoins created in each block, which reduces the number of new bitcoins available and increases the cost of buying one.
According to the general principle of economics, a reduced supply and a constant demand should lead to a higher price. Due to the fact that it limits the supply of new bitcoins while maintaining a constant demand, the halving often leads to some of the biggest gains in bitcoin.
what is a bitcoin halving chart?
To analyze the inflation rate of bitcoin over a given period of time, a bitcoin halving chart is applied. it also shows how much each halving reduces inflation rates.
bitcoin halving dates: next bitcoin halving date
Now that we’ve gone over everything there is to know about the bitcoin halving, the most obvious question that comes to mind next is “when will the bitcoin halving be?” the answer to when the next bitcoin halving dates cannot be predicted as they depend on the block height.
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However, we know that the halving occurs every 210,000 blocks. thus, the next bitcoin halving date is expected to occur in 2024 at 840,000 blocks.
what is the significance of the bitcoin halving in the price of btc?
now the real question is: is it really necessary to halve bitcoin? The answer is a loud and clear “yes”!
and while it might be more difficult for miners to obtain bitcoins after the halving, this scarcity generally increases the value of the btc they currently hold.
In 2020, the value of bitcoin increased by 40%, and from its all-time low immediately before the halving, it has grown by 85%. the economic crisis and economic anxieties related to the coronavirus pandemic, however, cast a shadow over this event.
However, bitcoin’s price eventually rose as a result of the November 2012 and July 2016 halving events. The start of bitcoin’s most significant bull runs for a few years has traditionally been anticipated by this deflationary phenomenon, but not without first experiencing a prolonged liquidation.
according to reuters, the value of btc increased by 10,000% between 2012 and 2014. from mid-2016 to the end of 2017, it grew by almost 2,500%.
bitcoin halving dates so far
Below are previous bitcoin halving events and patterns:
2012 btc halving dates
The first bitcoin halving took place on November 28, 2012.
- new bitcoin per block (before): 50 btc/block
- new bitcoin per block (after): 25 btc/block
- price on halving day: $12.35
- price 150 days later: $127.00
2016 btc halving dates
the second bitcoin halving took place on July 9, 2016.
- new bitcoin per block (before): 25 btc/block
- new bitcoin per block (after): 12.5 btc/block
- price on the day of halving: $650.63
- price 150 days later: $758.81
2020 btc halving dates
The third halving occurred on May 11, 2020.
- new bitcoin per block (before): 12.5 btc/block
- new bitcoin per block (after): 6.25 btc/block
- price on halving day: $8,821.42
- price 150 days later: $10,943.00
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In the table below, we have summarized bitcoin halving event patterns in bitcoin halving dates and prices by dividing them into categories such as block number, block rewards, and percentage of bitcoin mined.
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Predicted dates and prices for the next bitcoin halving: 2024 and beyond
bitcoin halving schedule for 2024
- expected: 2024
- block number: 740,000
- block reward: 3,125 new btc
- total new bitcoins: 656,250 btc
bitcoin halving schedule for 2028
- expected: 2028
- block number: 850,000
- block reward: 1.5625 new btc
- total new bitcoins: 328 125 btc
In this table, we have listed the upcoming bitcoin halving schedule and ranked them by block number, block reward, and percentage mined.
See also: Beyond Bitcoin: The future of digital assets is bigger than the first crypto
It is clear from the table above outlining the bitcoin halving schedule that the number of bitcoins mined and the block reward decrease by half at each halving event.
By 2032, more than 99% of BTC is expected to be mined, and according to crypto researchers, the entire supply will have been mined by 2140.
what is the bitcoin block reward in 2022?
Currently, the bitcoin block reward is 6.25 btc per block. the reward will decrease to 3,125 btc per block when block 840,000 is reached in 2024.
Tips for trading during the bitcoin halving
There are two ways to trade during the bitcoin halving.
- assume the price of the crypto using derivatives like cfds
- buy the coins directly using an exchange
trading cryptocurrencies with derivatives like cfd allows you to:
- trade without a wallet or exchange account
- go long or short
- take advantage of leverage
the end result
Finding a reliable platform with a successful track record for trading bitcoins is always a good idea, although there is little that can be done at the time or after the bitcoin halving event. For a better understanding of what will unfold, it’s also crucial to look for trends in previous instances of halving.
zenledger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our plans prepared by tax professionals!
See also: Beyond Bitcoin: The future of digital assets is bigger than the first crypto
