The Bitcoin Halving, also called the “Halvening”, is an event where rewards for mining new blocks are halved. This means that bitcoin miners will receive 50% fewer bitcoins than before for verifying transactions. Scheduled to occur once every 210,000 blocks, which works out to be approximately every four years, the halving will happen until the maximum supply of 21 million bitcoins has been generated by the network.
Here is an overview of the Bitcoin’s halving schedule historically –
In 2009, bitcoin mining rewards started at 50 BTC per block. During the first bitcoin halving that took place on 28 November 2012, the mining rewards were reduced to 25 BTC per block. The second halving held on 9 July 2016 brought the mining reward down to 12.5 BTC. In the upcoming third halving, the rewards will fall to 6.25 BTC.
If we were to extrapolate this timeline, we can estimate that the last block rewards to be mined will be after the 64th halving event, held in the year 2140. After that, bitcoin miners may have to solely rely on transaction fees for revenue instead of the block rewards.
There have been much speculation and theories on the price of bitcoin leading up to the third halving and after the halving. With the third halving coming up in May 2020, what do you think will happen and how will this impact your trading decisions?
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