Cryptocurrency halving is a popular term used to describe the halving of the block reward to miners after mining a cryptocurrency, which changes following a definite interval of time. It is used to limit the supply of a cryptocurrency which could further prevent situations like hyperinflation. If there were no cryptocurrency halving, the supply would have no limit, which can probably lower the demand for a particular cryptocurrency.
Although, in the case of Ethereum, there is no halving, as well as there is no end to its supply. Even though there is no limited supply for Ethereum, it is still used widely across the globe, as well as it's the second most powerful cryptocurrency after Bitcoin. Around 110 million Ethers are currently circulating around the globe. The reason for its success cannot be covered in this article, so let's move towards what is Bitcoin halving and the mathematical prediction of Bitcoin halving price.
What Is Bitcoin Halving?
It is a process that occurs after every four years. In this process, the number of bitcoin rewards to a miner after mining a valid block lower by 50%. A block stores data of the most recent transactions made with Bitcoin. Basically, Bitcoin mining is a process by which new Bitcoins come into existence, but the major function of mining is to look after the ledger system by solving complex mathematical functions.
It also prevents double-spending, a circumstance in which the transaction is made twice by using the same bitcoins. The limited supply of Bitcoin is capped to 21 million, and halving is required to maintain the scarcity of Bitcoin, indirectly increasing the demand for Bitcoin, which could raise the price of Bitcoin even more.
Yeah, scarcity plays a role in deciding the value of a cryptocurrency, and that too in the case of Bitcoin, Litecoin, Ripple, etc. Ethereum has a whole different story, it doesn't have a limited supply digit.
Why is Bitcoin Halving necessary?
We certainly don't want to see Bitcoin's number exceeding its limited supply of 21 million. So in order to lower down the supply, Bitcoin halving plays a crucial role. Another reason why Bitcoin halving is important is that it can directly or indirectly boost the profit.
Bitcoin halving reduces down the formation of new bitcoins in return for calculating the complex mathematical derivations, leading to its scarcity. The bitcoin price usually goes up after halving.
When is the next Bitcoin Halving going to occur?
The next bitcoin halving is going to appear in 2024. The block reward for miners will reduce to 3.125 BTC. At that time, 96.8 percent of the total supply limit would have been mined. The price of a bitcoin is expected to rise if the situation at that time is as good as now.
When was the last Bitcoin Halving?
The last time bitcoin halving occurred, was in 2020, which was termed as the third halving. The block reward for miners is 6.25 BTC. Roughly 93% of Bitcoins will be mined till the next halving.
Bitcoin Halving Price Prediction:
| Halving | Date | Block | Block reward | Mined in period | percent mined |
|---|
| BTC launch | 3rd January 2009
| 0 | 50 | 10,500,00 | 50 |
| Halving first | 28th November 2012
| 210,000 | 25 | 5,250,000 | 75 |
| Halving second | 9th July 2016
| 420,000 | 12.5 | 2,625,000 | 87.5 |
| Halving third | May 2020 | 630,000 | 6.25 | 1,312,500 | 93.75 |
| Halving fourth | Predicted 2024 | 840,000 | 3.125 | 656,250 | 96.875 |
| Halving fifth | Predicted 2028 | 1,050,000 | 1.5625 | 328,125 | 98.4375 |
| Halving sixth | Predicted 2032 | 1,260,000 | 0.78125 | 164,062.5 | 99.21875 |
