Next Bitcoin Halving: April 19th, 2024 History and What to Know!

This article covers the basics of Bitcoin halving, past events, and Bitcoin’s future in the crypto market including:

Bitcoin halving is a pre-programmed event that occurs approximately every four years or after the mining of every 210,000 blocks. During a halving, the reward for mining a new block of Bitcoin is cut in half.

Bitcoin miners that successfully validate transactions are awarded 6.25 new Bitcoin for each mined block.

The next halving is estimated to take place on April 19th, 2024. It will reduce the block reward to 3.125 BTC. This date is based on current estimates that change with every new block.

The halving of the block reward is a key feature of Bitcoin’s monetary policy, implemented to control the inflation rate, ensure the cryptocurrency’s scarcity, and increase its value over time.

• Each Bitcoin halving event reduces the number of new Bitcoins produced per block

• Resulting in a lower supply

• Bitcoin was created as a deflationary currency similar to gold

• As it becomes scarcer and demand increases, the price likely increases in line with supply and demand economics

The Bitcoin halving will ultimately cap the total supply of Bitcoin at 21 million coins.

Each Bitcoin has 100,000,000 satoshis in it.

This fixed supply is one of the fundamental characteristics differentiating Bitcoin from traditional fiat currencies, which can face inflationary pressures due to central bank policies.

These scarcity-driven price dynamics have historically played a role in Bitcoin’s price appreciation after each halving event. It will be interesting to see how future halving events will impact Bitcoin’s price.

Here’s a history of all the past Bitcoin halving dates since inception:

Miners receive 50% less Bitcoin as a reward for their work.

Before the first halving on November 28, 2012, the block reward was set at 50 Bitcoins. After the event, the reward was reduced to 25 Bitcoins per block.

Cryptocurrency mining software Slush Pool was the first to mine the block using a Radeon HD 5800 miner.

Here are the details of the exact block where the reward increased from 50 BTC to 25 BTC.

• Block number: 210,000

• Block reward: 25 BTC

• BTC created per day: 3,600 BTC

• BTC price before the halving date: $12.35

• Bitcoin price 1 year later: $964

The second halving occurred on July 9, 2016.

Prior to the halving, the new BTC per block was 25. It was reduced to 12.5 BTC per block.

• Block number: 420,000

• Block reward: 12.5 BTC

• BTC created per day: 1,800 BTC

• BTC price before the halving date: $663

• BTC price a year later: $2,500

The third halving event occurred on May 11, 2020.

This last Bitcoin halving event reduced the block reward from 12.5 BTC to 6.25 BTC.

• Block number: 630,000

• Block reward: 6.25 BTC

• BTC created per day: 900 BTC

• BTC price before the halving date: $8,500

• BTC price after: Peaked to $69,000 over the next several months

The fourth halving is estimated to occur at 840,000 based on the block time of around 10 minutes. It’ll bring the block reward down to 3.125 BTC.

• Expected date: April 19th, 2024

• Block reward: 3.125 BTC

• BTC created per day: Estimated to be 450 BTC

• New total supply of Bitcoin: 656,250

Here’s a quick recap of all the Bitcoin halving schedule (past and future) until 99% of the Bitcoin are mined.

Given the current trajectory, Bitcoin halving is likely to repeat every four years (roughly) until the block reward becomes zero. It’s difficult to say what the future price or reward trends will look like. 

The Bitcoin numbers and rewards halve each event. Based on the current Bitcoin halving cycle and schedule, 100% of all Bitcoin will be mined sometime around the year 2140.

Bitcoin halving reduces the rate at which new Bitcoin are created and introduced into circulation.

The process is programmed into the Bitcoin protocol and controls the supply and demand of Bitcoin.

Here are some of the steps involved in a Bitcoin halving.

• Bitcoin Block Reward: The Bitcoin network creates a reward for miners for validating transactions and adding new blocks to the blockchain. Block rewards are the primary incentive for miners to secure the network.

• Halving Schedule: The block reward is halved roughly every 210,000 blocks or four years. This interval controls the creation of new Bitcoin over time.

• Reduction of Block Rewards: After every halving, miners receive 50% less Bitcoin as a reward for their work.

• Scarcity and Supply: Reducing the rate at which new Bitcoinsare circulated controls inflation and ensures that the total supply of Bitcoin gradually approaches its 21 million coin limit.

• Miners use computational power to solve complex mathematical problems

• This secures the network

• When the block reward is halved, miners get fewer Bitcoin for their efforts

• This affects the profitability of mining operations as miners have to anticipate reduced block rewards and adjust their strategies accordingly

Bitcoin halving events often generate a lot of interest and speculation in the cryptocurrency market. Anticipating lower supply and potential demand increases can contribute to price volatility.

During previous halving events Bitcoin price experienced both pre-halving rallies and subsequent price increases in the months and years following the event. However, Bitcoin’s price is influenced by various factors and isn’t solely determined by halving events.

While the halving is often associated with positive price movements in Bitcoin, it does not guarantee an immediate or automatic increase in price. Every halving leads to smaller increases in the circu­lating supply of Bitcoin.

Supply shocks can potentially impact the configuration and scale of Bitcoin’s price fluctuations before and after each halving event. Nonetheless, the proportion of new supply in relation to the existing supply has diminished due to the reduction in the scale of these shocks from one halving occurrence to the subsequent one.

Over time, we can anticipate the influence of supply shocks on Bitcoin’s price surges will become notably less pronounced. Consequently, we should foresee less substantial shifts in Bitcoin’s price from the trough to the peak that stem from halving events.

The peaks in price will be of a reduced scale as the corresponding supply shocks become progressively less impactful.

Various factors, including market sentiment, overall demand for Bitcoin, investor speculation, and external events, influence the market’s reaction to the halving. 

While historical trends suggest that the halving has contributed to price appreciation over the long term, short-term price movements can be unpredictable and subject to market dynamics.

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