It doesn’t take long anymore, the bitcoin block halving or also called the bitcoin block halving. This means that the speed at which new bitcoins can be generated will decrease. The reason that it is important is because it means that there will be less on the market, which means that if demand rises or stays the same, the price will rise faster.
There have been two previous halves in the past, this was in 2012 and 2016. Both times it has shown that it is an important moment for the bitcoin price. The price has risen significantly around this event both times. In total there will only be 32 halves, spread over decades. When this is finally finished, it will no longer be possible to mine new bitcoins, so the total supply can never exceed 21 million bitcoins. This means that there will be a limited number of bitcoins in circulation, which in turn will ensure that the bitcoin value will be more valuable than if it can be mined indefinitely.
Bitcoin halving dates
|Halvering||Expecting date||Block height||Block Rewards (BTC)|
What is Bitcoin halving?
The bitcoin halving is an event that halves the hashrate with which new bitcoins are created. This happens every 4 years. The supply, or also called the supply of bitcoins is limited. No more than 21 million bitcoins are mined. After this number is reached, it will not be possible to mine more bitcoins. This is what makes bitcoin so interesting, the maximum cap is 21 million. And every four years the supply will decrease. Because of this, many describe it as digital gold, because the supply is and remains scarce.
There are currently about 18 million bitcoins in circulation, which is about 85% of what the total supply will ever be. The next three million will be released in the next 10 years, after which every four years there will be less on the market. Which means if growth towards bitcoin increases, the price will rise significantly as supply becomes scarcer. Many therefore see buying bitcoin as an inflation against the future. The reason supply is becoming scarcer is the protocol encoded in bitcoin, every 210,000 blocks there will be a ‘bitcoin halving’ what is called bitcoin halving. This means that after the halving, the process of producing new bitcoins becomes more difficult.
When is the next Bitcoin halving dates?
The next bitcoin halving dates are on the 14th of May at the moment, this can sometimes vary with a few days so it could be a maximum of 18 May. The Bitcoin halving date is never 100% because it can always speed up or delay the process. Every 10 minutes a so called ‘block’ is created. The last bitcoin halving will be in the year 2140, that would be the 21st million bitcoin. When that happens, miners will no longer receive block rewards. The next bitcoin halving after 2020 will be 2024, in four years time.
Bitcoin halving chart
Historically, the price always goes up around the half. But the final indicator leading to a price increase is simply supply and demand. So it certainly does not offer any guarantee, although history shows that this always happens. The Bitcoin halving chart below shows the bitcoin halving history.
The bitcoin halving is another moment that BTC’s supply on the market is shrinking, which means it is becoming scarcer. If the supply remains, it means that the price will rise. History shows that the price of bitcoin is always significantly higher half a year after the halving. This is how it went during the halving on 2016 which was on June 9th from $576 to $650 in one day. Which is a growth of more than 10%. And a month later it was even over $2500.
If history repeats itself, 2020 will be another very positive year for bitcoin. Bitcoin is becoming more and more popular and the supply is getting scarcer, more and more who want to own bitcoin will want to buy it for the long term which means the Bitcoin price prediction will rise.