Bitcoin Halving Chart: How Bitcoin Halving Works? Why Does It Matter?

Even though innumerable cryptocurrencies are existing today, none of it compares to the strong fundamentals and predefined conditions of Bitcoin. Adding to that, the concept of Bitcoin halving makes it stand out from the many up and coming cryptocurrencies today.

Bitcoin halving is an event that takes place every four years and reduces the block reward by half to achieve a limited supply of Bitcoins. And, the Bitcoin halving chart gives a clear view of each Bitcoin halving cycle and how it influenced Bitcoin’s market price before, during, and after the event.

Bitcoin halving is not a mere predefined event but a robust concept that was introduced to keep its supply in check. It is very common to feel confused regarding how exactly Bitcoin halving works and why it matters. We will answer all these questions and explain in detail what is Bitcoin halving and Bitcoin halving chart, in the present article.

What is Bitcoin Halving?

The Bitcoin halving event takes place every four years and it reduces the Bitcoin mining reward by half. Major reason for calling it a “ Halving event” is because it slashes the mining block reward exactly in half. The Bitcoin halving event is inherently built into the Bitcoin blockchain’s code by its creator Satoshi Nakamoto.

Satoshi Nakamoto envisioned creating a digital currency that never has to face rising inflation and depreciation in value like we see with traditional fiat currencies. And, he introduced the Bitcoin halving predefined condition to achieve a limited supply of 21 million BTC. This results in inflation control and points towards an appreciation in market value over time with the rising demand.

How Does Bitcoin Halving Work?

Bitcoin blockchain works based on the Proof-of-Work (PoW) consensus mechanism and the participants of this network are called miners or nodes. Miners verify transactions by solving complex computational algorithms. In exchange for successfully validating transactions, mining blocks, and securing the network, miners receive newly minted Bitcoins as “Block Reward”.

The consensus mechanism, the process of verifying transactions, block rewards, all of these are strongly encoded into Bitcoin’s algorithm right when its blockchain was developed. As per Bitcoin’s underlying code, every 210,000 blocks, which is approximately four years, the block reward given to miners will reduce by half. The halving process works automatically everytime 210,000 blocks are mined since it is a part of its inherent code.

Bitcoin Halving History

The first-ever block in the Bitcoin blockchain, which is also called the “genesis block” was developed by Satoshi Nakamoto in 2009. At that time, the initial reward for mining a block was 50 Bitcoins. After the first Bitcoin halving in 2012, Bitcoin mining reward was slashed by half to 25 Bitcoins. So far, 3 more Bitcoin halving occurrences took place, including the one in April 2024.

First Bitcoin Halving (2012)

As we mentioned, the first Bitcoin halving event took place on November 28, 2012, when the block height reached 210,000. The initial block reward 50 BTC reduced to 25 BTC. As the awareness regarding Bitcoin was comparatively less during that time, the halving event piqued the interest of the community. This led to a bull market, causing BTC’s price to increase significantly from $12 to $1,000 within a year.

Second Bitcoin Halving (2016)

The second Bitcoin halving event took place on July 09, 2016 and further reduced the mining reward by half. This occurred when the block height was 420,000 and the block reward decreased to 12.5 BTC. In line with the previous halving event, the BTC price increased this time as well. While BTC was trading at around $700 during the event, around one year later, it recorded a new all-time high (ATH) value of $20,089.

Third Bitcoin Halving (2020)

The next Bitcoin halving event happened on May 11, 2020 and the block reward dropped from 12.5 BTC to 6.25 BTC. Even though the market price of Bitcoin dropped from its previous ATH value and was trading at $8,000, it witnessed an incredible price surge in 2021. By the end of the year, in November 2021, Bitcoin reached another ATH value of $68,790.

Fourth Bitcoin Halving (2024)

Similar to the previous ones, Bitcoin witnessed another halving event in 2024 as well. It occurred on April 19, 2024, at a block height of 840,000 and reduced block reward from 6.25 BTC to 3.125 BTC. As a result, miners get only 3.125 BTC as a mining reward for successfully mining a block at present.

Bitcoin Halving Chart Explained

Bitcoin halving chart is a visual representation of previous and future bitcoin halving events and their influence on BTC market price. The above displayed one is the Bitcoin halving progress chart by BiTBO. While the year is represented on the horizontal axis, the BTC market price is represented on the vertical axis.

You can see the highlighted “Halving” vertical lines on the chart for the previous 4 halving events, as well as for the upcoming halving event in 2028. The curve on the chart shows Bitcoin market price and how it progressed over time, in each halving cycle. Furthermore, the red dots on the price curve indicate all of the times Bitcoin reached an all-time high value.

Significance of Bitcoin Halving Chart

The above displayed chart is just one example of a Bitcoin halving chart. There are other ways to represent Bitcoin halving events in a chart. For example, one could take different parameters on the vertical axis such as block reward, block height, supply growth, and other related factors such as mining difficulty, instead of market price. Overall, the Bitcoin halving progress chart is a comprehensive tool for analysts, miners, and investors to anticipate future price trends, supply constraints, and mining economics.

Why Bitcoin Halving Matters?

Bitcoin halving is the most crucial aspect not just for Bitcoin blockchain but for Bitcoin as a standard cryptocurrency. Out of all the reasons why Bitcoin halving matters, the reduced supply with reduced block reward to achieve a maximum supply of 21 million BTC stands out.

By slowing down the rate at which new Bitcoins enter into the market circulation, scarcity develops over time. This feature differentiates Bitcoin from traditional fiat currencies and protects it from inflation by the time its supply limit exhausts. Instead of fiat currencies such as USD and GBP, Bitcoin’s value increases as its supply decreases, similar to that of commodities like gold.

The only disadvantage to Bitcoin halving events and their reduced block rewards is decreased mining profitability for miners. As the time passes, Bitcoin mining difficulty increases with a large group of miners competing with each other whereas the block reward reduces. When the total supply limit of Bitcoin reaches 21 million, miners would still have to verify transactions and get a portion of transaction fees as reward at that time.

Conclusion

Overall, the Bitcoin halving event is an undeniable aspect of the Bitcoin blockchain, making it an attractive long-term investment such as traditional commodities. The Bitcoin halving chart gives a quick overview of previous and upcoming halving cycles and their influence on BTC’s market price.

Additionally, the associated price appreciation aftermath of each halving event is making them highly anticipated crypto events in the industry. As a deflationary supply model, Bitcoin halving makes Bitcoin a valuable digital asset, impacting every aspect of Bitcoin from supply and mining rewards to market dynamics!

FAQs

What is the halving of Bitcoin?

Bitcoin halving refers to an event that takes place every four years on the Bitcoin blockchain and reduces its block reward by 50%.

How many Bitcoin halvings are left?

The underlying mechanics of Bitcoin allows a total of 32 halvings, out of which 4 halving events are done. Thus, 28 Bitcoin halving events are left to take place until 21 million BTC supply is reached in 2140.

When was Bitcoin halving in 2024?

The Bitcoin halving event took place for the fourth time on April 19, 2024 and reduced mining reward from 6.25 BTC to 3.125 BTC.

When is the next Bitcoin halving event?

The next Bitcoin halving event is scheduled to take place in 2028, at a block height of 1,050,000.

Why is Bitcoin not rising after halving?

Bitcoin price increases after halving but it is not necessary to rise right after the event takes place. Historically, BTC market price rose several months after the halving event. So, it is best we wait for a few months for the BTC price to rise and reach a new all-time high value.