On May 11th 2020, Bitcoin Halve, if you are wondering what does Bitcoin Halving mean? This is the article for you. Bitcoin is the most valued and most used cryptocurrency. It underlining technology “blockchain” is the most innovative technology in the the past 15 years.
How Bitcoin Halving or Halvening occurs
When 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”.
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. In the most recent May 11, 2020 halving, the reward dropped from 12.5 to 6.25 BTC per block. In the 2024 halving, the reward will drop from 6.25 BTC per block to 3.125 BTC.
Importance of BTC halving
The halving decreases the amount of new bitcoins generated per block. This means the supply of new bitcoins is lower.
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 largest runs.
In the image below, the vertical green lines indicate the previous two halvings (2012-11-28 and 2016-7-9). Note how the price has jumped significantly after each halving.
You May Like:How to Send, receive and earn Bitcoin Via WhatsApp
The Next Bitcoin Halving
The Bitcoin halving is scheduled in block height, not date.
The halving happens every 210,000 blocks. The 2024 halving will happen on block 840,000.
The 2024 halving will likely occur between February 2024 and June 2024. Our most updated estimate is displayed at the top of this page.
What Happens to Miners During Halvings?
Many always speculate that miners will 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.