Industry News

Bitcoin Halving Dates: When Is The Next Bitcoin Halving?

Published
August 11, 2022
Written By
Share

Topics

    There are about 18,715,050 million Bitcoins already in circulation as of May 2021. This leaves just 2,284,950 million yet to be released via mining rewards. The next Bitcoin halving date is most likely to occur in 2024 and could have a dramatic impact on the cryptocurrency’s price.

    In this article, we go over everything you need to know about Bitcoin halving – including what it is, the next Bitcoin halving date, why it’s happening, and how you can trade it.

    What Is Bitcoin Halving?

    Bitcoin halving is an event where the compensation for mining new BTC blocks is halved, as a result of which miners receive 50% less BTC for authenticating transactions. Bitcoin halving occurs every 210,000 blocks which translate to approximately every 4 years.  

    Simply put, this is how Bitcoin creates a fake inflation that reduces by half every four years till all of it is issued and in use.

    How Does Bitcoin Halving Work?

    Bitcoin halving works because of its network's underlying blockchain technology software which dictates the rate at which new Bitcoins are created. The software requires computers in the blockchain network to compete to verify transactions known as Bitcoin mining.

    Bitcoin mining rewards the miners with several new Bitcoins when they can prove that the transactions that have been selected by them are valid. These transactions are verified in groups known as blocks, and the blockchain network is coded to halve the reward received by miners every 210,000 blocks.

    What Is The Importance Of Bitcoin Halving?

    Bitcoin halving reduces the number of new Bitcoins created every block, which reduces the number of new Bitcoins available and raises the cost of buying one.

    According to the general principle of economics, a decreased supply and a constant demand should lead to a greater price. Due to the fact that it limits the supply of fresh Bitcoins while maintaining a constant demand, halving typically leads to some of Bitcoin's greatest surges.

    What Is A Bitcoin Halving Chart?

    To analyze the rate of inflation of Bitcoin over a certain time frame, a Bitcoin halving chart is applied. It also demonstrates how much each halving of the inflation rates reduces them.

    bitcoin halving chart

    Bitcoin Halving Dates: Next Bitcoin Halving Date

    Now that we have gone over everything there is to know about Bitcoin halving, the most obvious question that comes to mind next is "When is Bitcoin halving?" The answer to when the next Bitcoin halving dates cannot be predicted as they depend on block height.

    However, we know that halving takes place after every 210,000 blocks. This way the next Bitcoin halving date is expected to happen in 2024 on 840,000 blocks.

    What Is The Significance Of Bitcoin Halving On The Price Of BTC?

    Now the real question is: is Bitcoin halving really necessary? The answer is a loud and clear “yes”!

    And while it could be more difficult for miners to obtain bitcoin following a halving, this shortage typically increases the value of the BTC they currently own.

    In 2020, the value of bitcoin surged by 40%, and from its all-time low immediately before the halving event, it has grown by 85%. The economic crisis and the coronavirus pandemic-related economic anxieties, however, cast a shadow on this event.

    Nonetheless, the price of bitcoin eventually increased as a result of the halving occurrences in November 2012 and July 2016. The beginning of Bitcoin's most significant bullish runs over some years has traditionally been anticipated by this deflationary phenomenon, but not without first experiencing a lengthy sell-off.

    According to Reuters, the value of BTC increased 10,000% from 2012 to 2014. From the middle of 2016 to the end of 2017, it grew by almost 2,500%.

    Bitcoin Halving Dates Till Now

    Given below are the previous Bitcoin halving events and patterns:

    2012 BTC Halving Dates

    The first Bitcoin halving took place on November 28th, 2012.

    • New Bitcoin per block (Before): 50 BTC/block
    • New Bitcoin per block (After): 25 BTC/block
    • Price on Halving Day: $12.35
    • Price 150 Days Later: $127.00

    2016 BTC Halving Dates

    The second bitcoin halving took place on the 9th of July, 2016.

    • New Bitcoin per block (Before): 25 BTC/block
    • New Bitcoin per block (After): 12.5 BTC/block
    • Price on Halving Day: $650.63
    • Price 150 Days Later: $758.81

    2020 BTC Halving Dates

    The third halving occurred on May 11, 2020.

    • New Bitcoin per block (Before): 12.5 BTC/block
    • New Bitcoin per block (After): 6.25 BTC/block
    • Price on Halving Day: $8821.42
    • Price 150 Days Later: $10,943.00

    In the following table, we have summarized the patterns of Bitcoin halving events into bitcoin halving dates and price by dividing it into categories like block number, block rewards, and percentage of Bitcoin mined.

    Event Date Block Block Reward Mined In Period % Mined
    First Bitcoin Halving November 28th, 2012 210,000 25 5,250,000 75
    Second Bitcoin Halving July 9th, 2016 420,000 12.5 2,625,000 87.5
    Third Bitcoin Halving May 11, 2020 630,000 6.25 1,312,500 93.75

    Expected Next Bitcoin Halving Dates and Price: 2024 and Beyond

    2024 Bitcoin Halving Schedule

    • Expected: 2024
    • Block number: 740,000
    • Block reward: 3.125 new BTC
    • Total new Bitcoins: 656,250 BTC

    2028 Bitcoin Halving Schedule

    • Expected: 2028
    • Block number: 850,000
    • Block reward: 1.5625 new BTC
    • Total new Bitcoins: 328,125 BTC

    In this table, we have listed the upcoming Bitcoin halving schedule and categorized them into block number, block reward, and percentage mined.

    Event Date Block Block Reward Mined In Period % Mined
    Fourth Halving 2024 840,000 3.125 656,250 96.875
    Fifth Halving 2028 1,050,000 1.5625 328,125 98.4375
    Sixth Halving 2032 1,260,000 0.78125 164,062.5 99.21875

    It is clear from the table above outlining the bitcoin halving schedule that the number of bitcoin mined and the block reward both decrease by half at each halving event.

    By 2032, more than 99% of BTC is expected to be mined, and according to crypto researchers, the total supply will have been mined by 2140.

    What Is The Bitcoin Block Reward In 2022?

    At present, the Bitcoin block reward is 6.25 BTC per block. The reward will decrease to 3.125 BTC for every block when block 840,000 is hit in 2024.

    Tips To Trade During Bitcoin Halving

    There are two ways to trade during Bitcoin’s halving.

    1. Assume the price of the crypto using derivatives such as CFDs
    2. Purchase the coins directly using an exchange

    Trading cryptocurrencies with derivatives such as CFDs enables you to:

    • Trading without a wallet or an exchange account
    • Going long or short
    • Take advantage of leverage

    The Bottom Line

    Finding a trustworthy platform with a successful track record to trade Bitcoin is always a smart idea, even though there is little that can be done either at the time or after the Bitcoin halving event. For  a better understanding of what will unfold, it is also crucial to look for trends in earlier halving instances.

    ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!

    FAQs

    1. When is Bitcoin halving?

    The next Bitcoin halving dates cannot be predicted as they depend on block height. However, since halving happens every 210,000 blocks, the next halving is estimated to occur in 2024 on block 840,000.

    2. How can I trade over the course of Bitcoin halving?

    The easiest way to trade Bitcoin over the course of the halving is through derivatives such as contracts for difference (CFDs). CFDs enable you to speculate on Bitcoin price movements without having to take ownership of the underlying coins. Another alternative is buying Bitcoins through an exchange. To do this, you will need to set up an exchange account and take responsibility for securing your cryptocurrency tokens in a wallet. Any profits that you incur in this trading would also be subject to crypto taxes.

    3. Is Bitcoin halving bad?

    Bitcoin halving is Bitcoin's way of using a synthetic form of inflation that halves every four years until all Bitcoin is released and is in circulation. This also means that miners receive 50% fewer Bitcoins for verifying transactions every fourth year when the halving happens.

    4. Can I make money from the BTC halving?

    Yes, it is possible to make money from Bitcoin halving. You can do this by speculating on Bitcoin's price movements in the weeks and months around the event. Contracts for difference (CFD) is a popular way to speculate on Bitcoin price movement as it enables you to go either long or short.

    5. When will all 21 million Bitcoins be mined?

    All 21 million Bitcoins (BTC) will be mined by 2140, but more than 98% will be mined by 2030.

    6. Who are Bitcoin miners?

    Bitcoin miners solve complex mathematical problems and confirm the legitimacy of crypto transactions. They then add these transactions to a block and create chains of these blocks of transactions, forming the blockchain. When a block is filled up with transactions, the miners that processed and confirmed the transactions within a block are rewarded with Bitcoin.


    Get Started Now

    Simplifying DeFi, NFT, and Crypto Taxes for Investors and Tax Professionals

    FB logolinkedin logotwitter logoyoutubrmedium


    Copyright © 2022 ZenLedger
    10400 NE 4th St, Floor #5,
    Bellevue, WA 98004, USA