Halving refers to a process that reduces the issuance rate of new proof of work (PoW) cryptocurrency. More specifically, halving is the periodic reduction of the block subsidy provided to miners. Halving ensures that a crypto asset will follow a steady issuance rate until it eventually reaches its maximum supply.
Bitcoin’s halving promotes stability over time by helping to ensure a more stable and predictable market. If the supply of new bitcoins were to continue at a high rate indefinitely, it could lead to hyperinflation and even greater volatility in the market.
The slow release of new bitcoins through halving also promotes a more equitable distribution of the currency. By limiting the supply of new coins, Bitcoin’s halving ensures that early adopters do not have an unfair advantage over new entrants.
Bitcoin’s next halving is expected to take place in 2024, approximately four years after the last halving, which took place in May 2020. Therefore, the exact Bitcoin halving dates are not known in advance. To date, more than 90% of all bitcoins have been mined, and it is estimated that the last bitcoin will have been mined by the year 2140.
Bitcoin Halving Countdown Timer by Binance Academy
Bitcoin’s block reward (or subsidy) was initially set at 50 BTC when its genesis block was mined. It was then reduced to 25 BTC in 2012, 12.5 BTC in 2016, and to 6.25 BTC in 2020. The next halving in 2024 would reduce the block reward to 3.125 BTC. Once 32 halvings have occurred, the process stops and no more bitcoins are created. At that point, the maximum supply of 21 million BTC will be reached.
A decentralized, digitized ledger that records transaction information about a cryptocurrency in a chronolo...
The term 'difficulty bomb' denotes the increase in mining difficulty in Ethereum, as part of its migration ...
A cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto. The first cryptocurrency, initi...