In the field of digital currency, Bitcoin has always been one of the focuses of much attention. As the first widely recognized and used cryptocurrency, Bitcoin’s halving event has attracted much attention. Bitcoin halving refers to the halving of Bitcoin’s mining rewards. This event has a profound impact on the price of Bitcoin, miners’ income, etc. So, how often does Bitcoin halve? What’s the timeline for Bitcoin’s halvings over the years? This article will delve into the Bitcoin halving phenomenon and reveal its secrets.

Bitcoin’s halving cycle is fixed, occurring approximately every four years. This law stems from the design of Bitcoin, which aims to control the speed of Bitcoin issuance and maintain its scarcity and value. The total supply of Bitcoin is set at 21 million, and every time a certain number of new Bitcoins are mined, the mining reward is halved. This mechanism causes the issuance of Bitcoin to gradually decrease, thereby promoting a steady increase in its value.

The second Bitcoin halving occurred in 2012, when mining rewards were reduced from 25 Bitcoins to 12.5 Bitcoins. This time the halving has once again set off a craze in the market, and investors have increased their investment in Bitcoin. Bitcoin prices are surging again, hitting new all-time highs. Although miners' profits have been halved, they are still able to make considerable profits due to the increase in Bitcoin prices. The Bitcoin halving event also made more people aware of the scarcity and value of Bitcoin, further promoting the popularity and application of Bitcoin.

The third Bitcoin halving occurred in 2016, when mining rewards were reduced from 12.5 Bitcoins to 6.25 Bitcoins. This time the halving once again set off a craze in the market, and the price of Bitcoin soared again, attracting more investors and miners to join the Bitcoin network. Bitcoin’s halving event has also triggered people’s thinking about the future development of Bitcoin. Many people have begun to pay attention to Bitcoin’s potential and application prospects in the financial field. Bits

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When it comes to the term Bitcoin halving, I believe many coin friends are familiar with it. After all, Bitcoin halving just happened in May this year, and it can be said that it was the hot search at the time. However, for newcomers in the coin circle, the understanding of Bitcoin halving is limited to this. Therefore, many newcomers in the coin circle have questions about how often Bitcoin is halved? Next, the editor of the coin circle will answer your questions.

 Bitcoin halving time list

The Bitcoin network generates a new block approximately every ten minutes. Every time a miner completes a block, he can get a certain amount of Bitcoin as a block reward. The reward is halved for every 210,000 blocks mined. Because the time for mining a block is limited to 10 minutes, at this rate, the reward halving cycle is four years, which means that the Bitcoin block reward is halved every four years.

Timeline of Bitcoin halvings over the years

1. On November 28, 2012, the number of new Bitcoins released every 10 minutes dropped from 50 Bitcoins to 25. The figure below shows the evolution of Bitcoin prices after the first halving

2. On July 9, 2016, Bitcoin dropped from 25 to 12.5. The figure below shows the evolution of Bitcoin prices after the second halving

3. On May 12, 2020, it will drop from 12.5 to 6.25. The figure below shows the evolution of Bitcoin prices after the third halving

4. The next halving is expected to occur between March 2024 and June 2024.

What happens after Bitcoin halving?

1. Slowing supply

Maintaining deflation through algorithms has always been part of the design of the Bitcoin protocol. It was established to ensure the value of Bitcoin. Cutting block rewards and setting the maximum possible supply of Bitcoin at 21 million Bitcoins gives Bitcoin an anti-inflationary property, which runs counter to the tendency of central banks to print money at will. There are currently about 17.5 million Bitcoins in circulation, with less than 3.5 million available to be mined. When the next block reward halving occurs, Bitcoin’s annual inflation rate will drop from the current 3.8% to around 1.8%. This would be the first time in BTC’s history that it has fallen below the historical average of gold supply growth of about 2%
- 3%.

Maintaining deflation through algorithms has always been part of the Bitcoin protocol design. It was created to guarantee the value of Bitcoin. The provision of reduced block rewards while keeping the total amount of Bitcoin at 21 million Bitcoins gives Bitcoin an anti-inflationary nature, unlike the tendency of central banks to print money at will. There are currently about 17.5 million Bitcoins in circulation, with less than 3.5 million available for mining. The next block reward halving could drop Bitcoin’s annual inflation rate from the current 3.8% to around 1.8%. This would be the first time in Bitcoin’s history that it has fallen below the historical average of gold supply growth of about 2%
- 3%.

2. The price may soar 10 times

When the Bitcoin block reward was halved for the first time, its price rose from 300 yuan to 7995 yuan, a 25-fold increase; when it was halved for the second time, the price rose from 5011 yuan to more than 140,000 yuan, a 28-fold increase. Therefore, many people predict that the third Bitcoin halving in May 2020 will trigger a big surge in Bitcoin prices, at least 10 times. However, these numbers are not so clear. After the halving in 2012, the price of Bitcoin rose for two months, and there was almost no immediate response to deflation in the month after the halving in 2016. This may also be caused by the "buy rumors, sell news" strategy implemented by some speculators.

Will the halving of rewards lead to a decrease in computing power?

From 2009 to 2012, the reward per block was 50 BTC, and about 7,200 BTC were issued daily; from 2012 to 2016, the reward per block was 25 BTC, and about 3,600 BTC were issued daily; from 2016 to 2020, the reward per block was reduced to 12.5 BTC, which is the current reward, and 1,800 BTC were issued daily; from 2020 to 2024, the block reward continued to halve to 6.25 BTC, and 900 BTC were issued daily, and it was gradually halved. The BTC reward for miners is reduced every four years. If the price does not rise, it means that the income will be halved.

Only when the price rises can the losses be offset. But price increases are not a certainty. Halving is a key node for the mining industry. If the income cannot maintain a certain level, many small and medium-sized miners may leave the mining industry. Therefore, the Bitcoin halving may also bring about a further reshuffle in the mining industry.

At present, the Bitcoin hash rate has not fallen sharply due to the previous price drop. After a certain degree of decline, the overall trend is still rising, and it currently exceeds the computing power at the peak of the price in December 2017. Even the halving effect will not bring about a sudden drop in computing power. There was no sudden drop in the hash rate after the last two halvings.

The editor of the currency circle found that from a historical perspective, the halving of block rewards did not lead to a decrease in the mining hash rate. From the last two times, the reason why the hash rate did not drop was mainly due to the rise in Bitcoin prices. This led to miners not taking measures to withdraw computing power in response to the Bitcoin halving.

In short, Bitcoin will halve once every four years, and each time Bitcoin halving, it will increase the difficulty of Bitcoin miners mining, which naturally leads to an increase in Bitcoin prices. Therefore, for newbies, at such a critical time, it is even more important to keep a clear mind and not act impulsively.

Bitcoin’s first halving occurred in 2009, when the mining reward per block was reduced from 50 Bitcoins to 25 Bitcoins. This incident had a huge impact on the Bitcoin market, triggering wild price fluctuations. The income of miners has also been halved, but due to the increase in the price of Bitcoin, miners can still obtain considerable returns. This phenomenon attracts more miners to participate in Bitcoin mining, further promoting the security and stability of the Bitcoin network.