Bitcoin halving, this term has attracted widespread attention and heated discussion in the field of cryptocurrency. It represents an inherent rule of the Bitcoin network and is also an important mechanism for the gradual reduction of the number of Bitcoin issuances. So, what does Bitcoin halving mean? How many times has Bitcoin experienced halving? This article will delve into this topic and reveal the mystery behind Bitcoin halving.

Bitcoin halving refers to the process of halving the block reward of Bitcoin. Halving occurs every approximately 210,000 blocks generated by the Bitcoin network. Initially, the block reward of Bitcoin was 50 Bitcoins, and with each halving, this number will be halved until the final reward is reduced to zero. This design is intended to control the total supply of Bitcoin, maintain its scarcity, and incentivize miners to continue to participate in mining.

The first Bitcoin halving occurred in 2009, when the reward per block was reduced from 50 Bitcoins to 25 Bitcoins. The second halving occurred in 2012, and the reward was reduced to 12.5 Bitcoins. The third halving took place in 2016, halving the reward to 6.25 Bitcoins. According to the design of Bitcoin, the halving will continue until the total supply of Bitcoin reaches 21 million.

Bitcoin halving not only affects the supply of Bitcoin, but also has a profound impact on the market. Each halving means that the difficulty of Bitcoin mining will increase further, and miners need to invest more computing power to get the same amount of Bitcoin rewards. This also makes the speed of Bitcoin generation slower, thereby driving up Bitcoin prices.

Behind the Bitcoin halving is the long-term impact on the cryptocurrency market. As the Bitcoin halving cycle continues to advance, people's awareness of Bitcoin's scarcity and value reserve has gradually increased. This has also further consolidated Bitcoin's position in the digital currency field, making it a safe-haven asset and digital gold in the eyes of investors and institutions.

The mechanism of Bitcoin halving not only affects Bitcoin itself, but also has a demonstration effect on the entire cryptocurrency market. Many other cryptocurrency projects have also followed the Bitcoin halving mechanism, trying to attract investors and increase the value of projects through scarcity. This has also prompted innovation and development in the entire digital currency field and promoted the continuous evolution of blockchain technology.

In general, Bitcoin halving, as an important rule of the Bitcoin network, not only affects the supply and price of Bitcoin, but also attracts attention and discussion about digital currencies around the world. As the Bitcoin halving cycle continues to advance, people's understanding of Bitcoin is also constantly sublimating, and Bitcoin is regarded as a unique digital asset with long-term investment value and risk aversion properties. Bitcoin halving is undoubtedly a revolutionary change in the field of digital currencies, and it is also a challenge and redefinition of the traditional financial system.

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In May 2020, Bitcoin ushered in its third halving, from 12.5 blocks to 6.25 blocks, which made the term Bitcoin halving once again a hot search. It is precisely because of this that many investors know about Bitcoin halving, but for investors who have just entered the circle, the term Bitcoin halving is only heard of and not understood. So, what is Bitcoin halving? How many times has Bitcoin halved? In response to these two questions, the editor of the currency circle will give you a good talk about Bitcoin halving.

 What is Bitcoin halving?

Simply put, Bitcoin halving is a preset event that occurs on average every four years, and the Bitcoin reward that miners receive from each block is reduced by half. The blockchain network is the core of Bitcoin. On average, a new block is mined and added to the blockchain every 10 minutes.

The latest halving will take place in mid-May 2020, scheduled to occur on block number 630,000, and the specific date and time depends on the processing speed of the block.

Will Bitcoin halving exist forever? Of course not. Since there are only 21 million bitcoins, there will be a day when mining will end. It is expected that the last bitcoin will be mined in 2140. Therefore, there will be no more halvings in the future.

 How many times has Bitcoin halved?

At present, Bitcoin halving has occurred three times, and the specific time is as follows:

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

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

4. It is expected that the next halving may occur between March 2024 and June 2024.

 Reasons for Bitcoin halving:

As the leader of virtual currencies, Bitcoin will be mined every ten minutes or so, and a certain amount of Bitcoin will be awarded for mining a block.

Satoshi Nakamoto stipulated in the Bitcoin protocol: the total amount of Bitcoin is limited to 21 million; the number of Bitcoins rewarded for mining is halved every 210,000 blocks produced.

Assuming that an average of 6 blocks are mined per hour, according to Satoshi Nakamoto, the reward is halved every time 210,000 blocks are mined, so the halving will occur approximately every four years. Until the total number reaches 21 million. The four-year halving rule is based on supply and demand considerations. If a large number of Bitcoins are produced without scruples and restrictions in a short period of time, the circulation of Bitcoin will increase and eventually become worthless. This can also be seen from the issuance of legal currency. The RMB cannot be issued without restrictions, otherwise the depreciation rate will also accelerate rapidly.

According to this algorithm, the total amount of Bitcoin is about 21 million (to be precise, 20999999.9769), which will be issued in 2140. Ethereum founder Vitalik Buterin once wrote in an article about the reason for slowing down the issuance of Bitcoin through halving: the main reason is to effectively control inflation. The biggest problem with traditional legal currency is that it is controlled by the central bank. The central bank can issue currency at will. If it issues too much, the currency will depreciate rapidly according to the supply and demand relationship.

In fact, Bitcoin and gold have a certain similarity. The amount of gold on the entire earth is very limited. If you dig out a piece of gold, the remaining gold will become less and less, and it will become more and more difficult to dig. Therefore, yellow grams can be used as metal currency and can maintain value. It has a history of more than 6,000 years of value storage.

Through the above introduction, I believe that everyone has some understanding of Bitcoin halving. As we all know, Bitcoin halving leads to lower miners' income, and supply will change immediately relative to demand. Therefore, Bitcoin halving is definitely a pressure for the mining industry, including the mining overlords. Of course, this does not necessarily lead to super-large-scale mining accidents. If you want to know more about related knowledge, you can pay attention to the currency circle. The editor of the currency circle will continue to update related reports later!