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What is bitcoin halving?

New bitcoins are issued by the Bitcoin network every 10 minutes. During 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 halved. The day when the amount is halved is called "halving".

In 2012, the amount of new bitcoins issued every 10 minutes was reduced from 50 bitcoins to 25. In 2016, it dropped from 25 to 12.5. In the most recent halving on May 11, 2020, the reward dropped from 12.5 to 6.25 BTC per block.

In 2024, the reward will decrease from 6.25 BTC per block to 3.125 BTC.

What is the meaning of halving?

Halving reduces the amount of new bitcoins generated per block by half. This means that the supply of new bitcoins is reduced, which makes purchasing them more expensive.

In normal markets, a decrease in supply with stable demand usually leads to price increases. Since halving reduces the supply of new bitcoins and demand usually remains stable, halving typically precedes a cryptocurrency market upswing.

In the image below, the vertical blue lines represent the three previous halvings (2012-11-28; 2016-7-9; 2020-5-11). Notice how the price has significantly spiked after each halving.

Bitcoin halving schedule

The halving of bitcoins is scheduled by block height, not date. Halving occurs every 210,000 blocks. The 2024 halving will occur at block 840,000.

What happens to miners during halving?

Many people always assume that miners will shut down after the halving. The reality is that most miners are very savvy and their cost is halved, so ultimately they don't shut down any miners.

History of Bitcoin Halving Dates

2012

The block halving in 2012 was the first halving, which occurred on November 28, 2012.

The block halving was mined by SlushPool by someone using a Radeon HD 5800 miner.

• New BTC per block Before: 50 BTC per block
  
• New BTC per block after: 25 BTC per block
  
• Halving day price: $12.35
  
• Price 150 days later: $127.00
  

2016

The second halving occurred on July 9, 2016.

• New BTC per block Before: 25 BTC per block
  
• New BTC per block after: 12.5 BTC per block
  
• Halving day price: $650.63
  
• Price 150 days later: $758.81

2020

The third halving occurred on May 11, 2020.

• New BTC per block Before: 12.5 BTC per block
  
• New BTC per block after: 6.25 BTC per block
  
• Halving day price: $8821.42
  
• Price 150 days later: $10,943.00

Current reward per bitcoin block

The current reward for a block of bitcoins is 6.25 bitcoins per block. When block 840,000 is reached in 2024, the reward will fall to 3.125 bitcoins (BTC) per block.

When will all 21 million bitcoins be mined?

All 21 million bitcoins (BTC) will be mined by 2140. However, by 2030, over 98% will have been mined.

Do we need halving?

Halving is an integral part of the cryptocurrency economic model, as it is responsible for a stable pace of creating new coins and its further regulation. Such a controlled level of monetary inflation is one of the main differences between cryptocurrencies and traditional fiat currencies, which essentially have an infinite circulating supply.

What is the current reward for a bitcoin block?

Currently, 6.25 new bitcoins are being issued per block.