The Bitcoin Halving is a hard-coded rule in the Bitcoin Core software that automatically reduces the daily mining rewards by 50% every 210,000 blocks mined (approximately ~4 years).\u00a0<\/p>\n
Mining is important to bitcoin because it\u2019s a process that validates Bitcoin transactions<\/a> <\/strong>and provides security for the Bitcoin Blockchain Network<\/a>.\u00a0<\/p>\n This year, starting with Block #840,000, the block subsidy (aka \u2013 coinbase reward) for the miner who successfully mines a block will be rewarded 3.125 BTC which is half of what they are used to earning (6.25 BTC) per each mined block every ~10 minutes. .\u00a0\u00a0<\/p>\n ~450 newly mined BTC will be added creating ~13,500 new bitcoins per month and ~164,250 Bitcoin added to the Total Bitcoin Supply each year for the next 4 years until the next halving. This fixed schedule continues through 2140 as a way to pre-determine a fixed inflation schedule of the asset.<\/p>\n Every 4 years an epoch (cycle) completes and the reward to miners for validating transactions keeping the network secure is reduced by half.\u00a0 A quick look at previous halving epochs can signal what could happen with regards to price action:<\/p>\n Price on Halving Day: $12.35<\/p>\n New BTC Per Block (pre-halving): 50 BTC per block<\/p>\n New BTC Per Block (post-halving): 25 BTC per block<\/p>\n Price 150 Days Post Halving: $127.00<\/p>\n Change between next halving: 52x INCREASE<\/strong><\/p>\n Price on Halving Day: $650.63<\/p>\n New BTC Per Block (pre-halving): 25 BTC per block<\/p>\n New BTC Per Block (post-halving): 12.5 BTC per block<\/p>\n Price 150 DaysPost Halving: $758.81<\/p>\n Change between next halving: 13.5x INCREASE<\/strong><\/p>\n Price on Halving Day: $8821.42<\/p>\n New BTC Per Block (pre-halving): 12.5 BTC per block<\/p>\n New BTC Per Block (post-halving): 6.25 BTC per block<\/p>\n Price 150 Days Later: $10,943.00<\/p>\n Change between next halving: 8x INCREASE<\/strong> (est. $72K USD\/BTC)<\/p>\n Bitcoin\u2019s price is a series of higher highs and higher lows than previous 4 year cycles.\u00a0 No other asset has the same reliable scarcity of Bitcoin.\u00a0\u00a0<\/p>\n We\u2019ve heard this for years.\u00a0 Every previous cycle has been described, at the time, as being different.\u00a0 Looking at historical data, it\u2019s actually been the same.\u00a0 High highs, low lows, accumulation, capitulation and then reaccumulation.\u00a0 Substitute each 4 year cycle\u2019s unique Black Swan event(s) and you\u2019re still left with roughly the same old predictable price action.\u00a0\u00a0<\/p>\n In the past three 4-year cycles, Bitcoin has been relatively predictable.\u00a0\u00a0<\/p>\n Year 1 (3 months): Sideways pricing<\/p>\n Year 1-2: Bull Market<\/p>\n Year 3: Bear<\/p>\n Year 4: Recovery w\/ before next Bull + pre-halving selloff<\/p>\n The Bitcoin market has grown over the years amongst a small number of market participants with limited capital to support mines selling off Bitcoin reserves to cover costs.\u00a0\u00a0<\/p>\n This time, however, it is different.\u00a0 We\u2019ve never had Wall Street to absorb the supply selloffs.<\/p>\nBitcoin\u2019s Halving History<\/strong><\/h2>\n
2012 Halving Epoch (11\/28\/2012)<\/h3>\n
2016 Halving Epoch (7\/9\/2016)<\/h3>\n
2020 Halving (5\/11\/2020)<\/h3>\n
\u201cBut this time it\u2019s Different!\u201d<\/h2>\n