A Bitcoin halving date usually is a quadrennial event in the Bitcoin blockchain, wherein the reward allocated to miners for successfully verifying and adding new blocks to the blockchain undergoes a substantial reduction. The term Bitcoin halving refers to the phenomenon wherein the reward for Bitcoin mining is halved.
The significance of the halving event lies in its role in reducing the rate of new Bitcoin creation as the cryptocurrency approaches its fixed supply limit. Back in 2009, each mined block in the chain yielded a reward of 50 BTC. As of October 2023, there were approximately 19.5 million BTC circulating supply, leaving only about 1.5 million bitcoins to be released through mining rewards.
What Is Bitcoin Halving?
Once the Bitcoin network successfully processes 210,000 blocks, approximately every four years, there is a reduction in the block rewards granted to Bitcoin miners for their transaction processing efforts. This phenomenon is commonly referred to as “bitcoin halving” as it precisely halves the rate at which new BTCs enter circulation.
This reward mechanism will plow on until approximately 2140, at which time the predetermined limit of 21 million coins will be achieved. Beyond this point, miners will be compensated through transaction processing fees paid by network users. This fee will eventually serve as miners’ motivation to participate and sustain the network.
Previous Bitcoin Halving Events
There have been a total of three Bitcoin halving events until now. The first halving event occurred on November 28, 2012, wherein the reward amount for each block mined was 25 bitcoins. Thereafter, the second halving event occurred on July 9, 2016, again reducing the reward amount in half, reaching 12.5 bitcoins.
Lastly, the most recent halving event occurred on May 11, 2020, where the reward was reduced to 6.25 Bitcoins for every block successfully mined. With the next halving on the horizon, projected for mid-2024, the block reward will be 3.125 BTC.
Why Halving Happens Every 4 Years
The Bitcoin mining algorithm is designed to aim for the discovery of new blocks approximately every 10 minutes. However, the actual time it takes to find blocks can vary, sometimes exceeding 10 minutes and sometimes being less. This variance in block mining times can either shorten or extend the duration required to reach the next halving milestone. For instance, if blocks consistently take an average of 9.66 minutes to mine, it would take approximately 1,409 days to mine the 210,000 blocks needed (considering four years of 1,461 days, including one day for a leap year).
When Is The Next Bitcoin Halving Date?
The forthcoming Bitcoin halving is anticipated to happen around April 2024, coinciding with the mining of the 740,000th block. During this event, the block reward will be reduced from 6.25 bitcoins to 3.125 bitcoins. The precise date of the halving remains uncertain due to the variable block generation time, with the network’s target being an average of one block every ten minutes.
BTC Price Prediction After BTC Halving
Bitcoin Price is projected to hit an all-time high (ATH) after the next Bitcoin halving event. Market experts, traditional financial firms, and CoinGape Media analysts predicted a Bitcoin price to surpass $120,000. The current ATH price is $68,789. Some experts such as investment management firm ARK Invest’s CEO Cathie Wood believe BTC price will hit $1 million by 2030.