Contents
- Bitcoin Halving Explained
- A Timeline of Past Bitcoin Halvings
- Bitcoin Halving Myths
- Frequently Asked Questions
Bitcoin halving explained
Bitcoin halving:
- Happens every four years
- Halves the rate that new Bitcoins are created.
- Once we reach the hard cap of 21 million Bitcoins, no more will be created.
This mechanism is part of Bitcoin’s design to control inflation and mimic the scarcity of finite resources like gold.
The last halving event occurred on April 20th 2024, which reduced the “block reward” for “mining” from 6.25 to 3.125 Bitcoin per block.
Learn more about Bitcoin and Bitcoin mining.
A Timeline of Past Bitcoin Halvings
Let’s travel back in time and explore the last four Bitcoin halvings, which occurred in 2012, 2016, 2020 and 2024.
If you’re looking for historical prices over the last 10 years, check out our Bitcoin price stats here.
First halving (2012)
The first Bitcoin halving happened on November 28, 2012. It slashed the block reward from 50 Bitcoin to 25, and saw Bitcoin’s price shoot up from around US$11.64 to US$39 within 100 days. Within one year, Bitcoin’s price surged to a high of US$1,133.89.
Second halving (2016)
The second Bitcoin halving, which took place in 2016, decreased the block reward from 25 to 12.5. Again, it was only after a year that Bitcoin saw a massive surge to a peak of approximately US$25,000 in December 2017. This increase could also be attributed to the increased acceptance of cryptocurrencies and the emergence of initial coin offerings (ICOs) during this time as well.
Third halving (2020)
When the third halving occurred on May 11, 2020, it decreased the block reward to 6.25 Bitcoin. Despite this event not resulting in an immediate price increase – likely because external factors such as coronavirus – Bitcoin continued to spike to an all time high in late 2021 peaking at over US$85,000.
Fourth halving (2024)
The fourth Bitcoin halving took place on April 23, 2024, which decreased the block reward to 3.125 Bitcoin per block. As with the previous halving, Bitcoin’s price did not surge immediately. However, a little over half a year later, Bitcoin finally crossed its historic US$100,000 milestone.
Fast forward a year later in 2025, a single Bitcoin is currently worth US$118,000 at the time of writing. Bitcoin’s up and up could largely be attributed to institutional interest in the currency. In simple terms, major banks and financial institutions are now putting lots of money into Bitcoin and launching Bitcoin-related financial products.
Bitcoin halving myths
As the Bitcoin halvings become more well-known each year, so do misconceptions surrounding them. Let’s dispel some of these misunderstandings by shedding light on what actually happens during halvings.
1. Guaranteed price increases
There is a common misunderstanding that the Bitcoin halving will always cause its price to rise. Historical data does indicate this has happened in the past, yet no one can be certain of what future events may bring due to market demand and external factors like regulation or global economic conditions. It is important for those interested in investing not to look at historical increases as an assurance, but instead, weigh up all available data to make informed decisions.
2. The End of Bitcoin Mining
The Bitcoin halving process has sparked a myth that it will eventually lead to the end of Bitcoin mining. Some people think miners will not be incentivised to continue to secure the network once all 21 million Bitcoins are mined. This is an inaccurate assumption as miners also receive transaction fees and these aren’t going away anytime soon.
As block rewards diminish over time on the Bitcoin network, transaction fees become increasingly important in providing incentives for miners who work hard to secure the ecosystem by processing transactions.
Frequently asked questions
When is the next Bitcoin halving?
The upcoming Bitcoin halving is projected to take place around March or April 2028. The block reward will decrease from 3.125 to 1.5625 Bitcoin per block. There are even Bitcoin halving countdown timers online, like this one here.
How do miners adapt to reduced block rewards?
Mining operations need to become more efficient, and miners may need to switch to more profitable alternatives in order to make up for reduced block rewards. Miners must take steps to reduce overhead costs, enhance their mining processes, and explore alternative sources of rewards such as transaction fees to remain profitable with reduced block rewards.
