Bitcoin halving takes place on average every 4 years. While the next Bitcoin halving date is eagerly awaited by investors, the halving event is predicted to be between March and June 2024. During the halving times, the movement is observed in the BTC price.
When is Bitcoin Halving?
BTC halving is one of the most anticipated events on the Bitcoin network. With the block reward halving, the mining reward on the Bitcoin network will once again be halved. The halving event takes place on average every 4 years. Thus, next Bitcoin halving date March and June 2024 between is expected. However, it would not be correct to give a clear date for the halving. Because the dates may change according to the processing times. In addition, the data will become clearer as the date approaches.
Bitcoin block reward halvings are very important as they create upward pressure on the price and reduce the inflation rate of BTC. For this reason, crypto investors are already focused on the block reward halving, which will take place in 2024.
With Bitcoin halving, the block reward given to miners in Bitcoin for verifying transactions is halved. Halving also makes the popular cryptocurrency more deflationary as it reduces the number of BTC circulating in each block. On the other hand, the reward system in the Bitcoin blockchain is planned to be stopped when it reaches the supply of 21 million, that is, when there is no new BTC to be mined. This means that block reward halving will also stop. At this point, miners will be rewarded with fees that network users will pay for processing transactions. Fees will allow miners to still have the incentive to mine and maintain the network. However, it will take more than 100 years for this to happen, and perhaps those investigating this issue today will not be able to witness these events taking place.
Bitcoin Halving History
The halving takes place to increase the operational efficiency of BTC. Also, network fees are significantly reduced, which ultimately increases the demand for Bitcoin.
Bitcoin has experienced three halvings so far. The first of these was in 2012, and the block reward was reduced from 50 BTC in the first halving to 25 BTC. The second halving occurred in 2016 and the reward from 25 BTC was withdrawn to 12.5 BTC. The third Bitcoin halving took place in 2020, and the block reward in the Bitcoin network decreased to 6.25 BTC.
With the halving in 2024, the block reward in the Bitcoin network will decrease to 3,125 BTC. On the other hand, it is believed that the block reward halvings will lose their effect as the block reward approaches zero in Bitcoin.
Bitcoin Halving Effect on Price
Block reward halvings are critical for Bitcoin. Since the supply of Bitcoin is limited to 21 million BTC, the number of Bitcoins mined per block is automatically reduced every four years. With each block reward halving, some important changes take place to fundamentally increase the growth and efficiency of the network. On top of all this, the event causes a reduction in available supply, followed by an impressive increase in demand and the price of BTC. Miners are generally not bothered by the reduction in block rewards caused by the halving event, as they know that there will be a significant increase in Bitcoin value as the process continues.
In light of previous data, a decrease in supply while demand has remained stable has generally caused the price to rise. However, it should be noted that price changes depend on the ratio of supply and demand. Bitcoin supply dwindles due to the halving constraining it. The fact that Bitcoin is still in demand after the halving is thought to have led to a price increase, but the price of Bitcoin depends on many factors, not just the halving and demand.
