DeutschEven though there is still some time until the next so-called Bitcoin Halving (halving), experts are already saying that the upcoming halving in 2024 will have a positive impact on the price. But what exactly is Bitcoin Halving? Basically, it is a very important feature that Satoshi Nakamoto came up with during the early programming of the digital currency. The reward per mined (minted) block is halved. In combination with the fact that the number of Bitcoins is limited to 21 million coins, prices could rise as (increasing?) demand meets a limited supply. This is because it becomes more difficult to calculate the numerical sequences and more computing capacity is required. And this capacity costs money. “Previously”, several Bitcoins per day could be calculated on a home PC. Nowadays, this would take years for the same number of Bitcoins.
The Bitcoin Halving Reduces the Supply
As a result of this limited availability and increasing demand with growing awareness, the value of a Bitcoin increases. Now comes the so-called halving. This is stored in the code of every BTC.
Specifically, this means that every 210,000 blocks or approximately every 4 years, miners receive only half the amount of Bitcoins as compensation (so-called rewards) for their mining work. Until 2012, miners received 50 BTC per block, after November 28, 2012, it was only 25. Since July 2016, i.e. another 210,000 blocks later, it is only 12.5 BTC per block. On May 11, 2020, the miners’ rewards were reduced to 6.25 BTC.
Historical Data on Previous Halvings
- Genesis Block: January 03, 2009
- first Bitcoin Halving: November 28, 2012
- second Bitcoin Halving: July 09, 2016
- third Bitcoin Halving: May 11, 2020
- fourth Bitcoin: approx. May 2024 (exact timing)
The Upcoming Bitcoin Halving
The next halving is scheduled for May 2024. The rewards for miners will be halved again from 6.25 BTC to 3.125 BTC. And there are divided opinions in the community and among experts as to how this will affect the Bitcoin price. On the one hand, there are the optimists who predict a surge in prices. Since they continue to expect increasing awareness and thus increasing demand, this must have an impact on the price, as the supply can no longer increase. On the other hand, experts see it as price neutral. This includes Mao Shixing, co-founder and CEO of the world’s sixth-largest mining pool, F2Pool. In an interview with Jinse Finance, he said that investment income from mining rigs could be offset over time by various household appliances. The use of such devices would lead to a drastic increase in Bitcoin miners, causing the Bitcoin ecosystem to grow explosively.
However it may come, a halving is always a special moment in the Bitcoin world.
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