The Bitcoin Halving Event. Chances are, you’re familiar with it. And if this is the first time you hear about, read on. To get started right away, the halving event is a significant occurrence for Bitcoin in 2024, and it is about to happen!
What exactly is the Bitcoin halving?
The Bitcoin halving reduces the number of bitcoins miners are awarded for each block they mine post-halving — to exactly half of their current earnings, to be exact. However, there’s no need for concern; this process is intentional.
Halvings are a critical component of the Bitcoin blockchain’s architecture. As part of the network’s ‘fiscal policy,’ they diminish the pace at which new bitcoins are introduced to the system, occurring approximately every four years. Though the reduction in rewards might seem intimidating, it’s actually a thoughtfully crafted strategy intended to ensure stability within the Bitcoin ecosystem.
The Impact of the Halving on Bitcoin
The purpose of the halving is to mitigate inflation within the network. According to the principles of supply and demand, generating millions of bitcoins now would depreciate the value of the existing ones. By curtailing the supply of bitcoin, the strategy seeks to avert such a scenario. Clever, right?
⏰A Recap: Previous Halvings by the Numbers
Take a brief glance at the Bitcoin valuations at the time of the past three halvings.
Remember, past performance does not predict future outcomes.
Halving #1:
- Date: November 28, 2012
- Price at the time of halving: $13
- 365 days later: $979
- Percentage increase: +7,431% ⬆️
Halving #2:
- Date: July 9, 2016
- Price at the time of halving: $664
- 365 days later: $2,519
- Percentage increase: +279% ⬆️
Halving #3:
- Date: May 11, 2020
- Price at the time of halving: $9,734
- 365 days later: $55,901
- Percentage increase: +474% ⬆️
So, what about the 2024 Bitcoin halving?
It’s on the horizon! While predicting the exact date isn’t an exact science, we anticipate the forthcoming Bitcoin halving will occur in the last week of April 2024. So, mark your calendars. And when it happens, we’ll celebrate — albeit with just half a glass.