Bitcoin Halving

[wpcdt-countdown id=”9287″]

What is Bitcoin Halving?

Bitcoin Halving simply refers to reducing the rate of daily new bitcoins generated with time which decreases the inflation rate of bitcoin with time.

Bitcoin Halving is a process that reduces bitcoin mining reward per block to half of the previous value that occurred after every 210,000 blocks.

In bitcoin halving, the rate of generation of new bitcoins will be reduced by 50% in every 4 years approximately.

Bitcoin Halving is the event of a reduction in the bitcoin block reward by 50% that occurred every-time whenever new 210,000 blocks mined by miners. It leads to the lower supply for new bitcoins.

How Bitcoin Halving affects Bitcoin Price?

bitcoin halving dates
Bitcoin Price Chart

In the image above, the vertical green lines indicate the previous two halvings (2012-11-28 and 2016-7-9).

In reality, no one knows what will happen with the price of bitcoin after the bitcoin halving event.

But according to fundamentals, the price of bitcoin will rise in long term aspects due to a reduction in inflation on the increasing demand.

In the short term, the bitcoin rate may rise to some value or maybe remained unchanged but there are very fewer chances of fall in the price of bitcoin when the bitcoin halving occurred.

If you look at the price history of bitcoin then you will find that bitcoin price makes new All-Time High price (ATH) in the next 1-2 years from the time of bitcoin halving occurred.

In November 2012, when the first bitcoin halving occurred then the bitcoin price went from $13 to $1100 in just the next 12 months.

In July 2016, When the second bitcoin halving occurred then the bitcoin price went from $650 to $19000 in just the next 18 months.

Easy to guess what happens after the third halving of bitcoin likely to happen in May 2020.

What Happens When All Bitcoins Are Mined?

There is only a maximum of 21 million bitcoins that can be created or mined, and after these all 21 million bitcoins will be mined then there will be no new bitcoins that will be created and we can say there will be no new bitcoins will be mined.

As we know that in every four years the rate of new bitcoins creation or mining reward decreased to its half value from its previous value. So as per the mathematical calculation, it is estimated that all bitcoin will be successfully mined or created until the year 2140.

So, what happened after 2140 when there is no new bitcoin created or mined? and what happened with miners? and how the bitcoin network will be protected?

Here is the expected answer from the developers and bitcoin experts:

These questions are discussed on the bitcointalk platform time to time as you can check the following links:

The most reliable solution answered by most of the bitcoin experts is that the miners will have to rely only on the transaction fee of bitcoin instead of the newly generated bitcoins in the block reward.

Of course, there won’t be any new bitcoins that will be generated after the 21 million cap limit reached, and there won’t be any meaning of bitcoin halving after that, as the miner’s block reward will be zero (0) and only the transaction fee available on that mined block.

Hence Miners will continue to mine new blocks by getting rewards of the transaction fee and bitcoin network will always stay protected and will never be stopped anytime in the future.

Bitcoin Block Explorer