Bitcoin halving is an important event that every cryptocurrency enthusiast looks forward to. The last Bitcoin halving event was on 19 April 2024. The next event is scheduled to be in 2028.
So what is Bitcoin halving? Why are investors anticipating this event? How will it impact investments? This article answers all your queries on Bitcoin halving.
Bitcoin Halving: What Is It?
Bitcoin halving is simply an event when the mining rewards of bitcoins are reduced to half. A mining reward is an amount that a miner receives in cryptocurrency after they find and validate a new block to the chain.
The first reward of bitcoin, the first cryptocurrency, when it was launched in 2009, was 50 BTC per block. That means a miner would get 50 bitcoins for finding and validating a new block.
The first halving event of Bitcoin took place on 28 November 2012 when the rewards were halved to 25 BTC per block. In the second halving event, which took place on July 9, 2016, the rewards were halved to 12.5 BTC per block.
The rewards were again halved to 6.25 BTC per block during the third event that took place on May 11, 2020. In the fourth Bitcoin halving event that was held on April 19, 2024, the rewards were halved to 3.125.
The next event, which is set to take place in 2028, will see the rewards halved to 1.625.
The table below summarises the information about Bitcoin halving events.
| Date of the Event | The Halved Price of Bitcoin |
| 28 November 2012 | 25 BTC per block |
| May 11, 2020 | 12.5 BTC per block |
| April 19, 2024 | 6.25 BTC per block |
| April 19 2024 | 3.125 BTC per block |
| 2028 (The exact date is not announced yet.) | 1.625 BTC per block |
| 2032 (The exact date is not announced yet.) | 0.78125 BTC per block |
Bitcoin halving occurs approximately every four years. What is the significance of this four-year gap between two subsequent events? It takes approximately four years for 21,00,000 bitcoins to be mined. The price is halved after 21,00,000 bitcoins are mined.
The final halving event is set to occur in 2140 when Bitcoin reaches the maximum capitalization.
Also, Check: Bitcoin Market Cap And Price Prediction 2025 To 2030
How Does Bitcoin Halving Impact the Miners?
After learning about what is bitcoin halving, some of you might be confused about how it will benefit the miners. In order to understand that you should know about the increase in the price of bitcoin since it was launched.
The price of bitcoin in 2009, when it was launched, was $0. In 2013, the price reached $100 and in 2017 it became $10,000. In 2021, amid the Covid-19 pandemic, the price of bitcoin crossed $60,000. The current market price of Bitcoin is $61,115.84.
There is only a limited number of bitcoins in the world. Out of the 21 million bitcoins in existence, 19.5 million have already been mined out, ie. 90% of the coins are currently in circulation. So if the halving is not done regularly, a few people will become the owners of a large number of coins. This will cause inequality in the economy. Bitcoin halving prevents such a situation in view of the increasing price of bitcoins.
How Does Bitcoin Halving Impact The Market?
The following are the effects of Bitcoin halving on the market.
- Counter Inflation: Bitcoin halving is an effective method to tackle the ill effects of inflation on the currency. When the reward coins are reduced, the scarcity of the coins will be maintained in the market. Thus a high price range would be maintained for the coin.
- Increased Demand: As explained before, bitcoin halving reduces its supply in the market. Reduced supply increases the demand for the coin in the market by creating scarcity.
- Scope of Investment Increased: Bitcoin halving reduces the supply of the coin in the market. The high demand that comes with the reduced supply serves as an assurance to investors that investing in Bitcoin is profitable.
- Effects on Mining: Bitcoin halving reduces the rewards for the miners. So in order for them to maintain their earnings, they should mine bitcoins with increased efficiency. Thus, halving boosts the Bitcoin mining process.
Are There Any Negative Effects Of Bitcoin Halving?
Bitcoin halving will only work if the price increases consistently. Unless there is a steady price increase, as the mining rewards reduce in number the earning potential of miners will also decrease.
This is an unwelcome event that will result in miners leaving the business. This will eventually lead to Bitcoin losing its shine, though this will not happen in reality.
