Eleven years ago, Bitcoin, the leading cryptocurrency, underwent its inaugural halving, marking a significant milestone in its history. This event prompts a revisit of Bitcoin’s journey, especially as the community anticipates the next halving scheduled for April 2024. The first Bitcoin transaction occurred almost 15 years ago, shortly after the release of Satoshi Nakamoto’s white paper.
The inaugural halving, on Nov. 28, 2012, saw Bitcoin trading at around $12, a stark contrast to its current value of $37,000. While Nakamoto’s white paper hinted at mechanisms controlling BTC creation, the halving specifics are found in the Bitcoin source code, indicating a subsidy reduction every 210,000 blocks, occurring approximately every four years.
This programmed halving, aimed at combating inflation and preserving scarcity, altered miner rewards. Before the first halving, miners received 50 BTC per block; subsequent events reduced this to 25 BTC in 2012, 12.5 BTC in 2016, and 6.25 BTC in 2020. Historical data reveals that Bitcoin’s price cycles have been notably influenced by halving events, with significant surges following each occurrence.
As the community observes the eleventh anniversary, attention turns to the upcoming fourth halving in April 2024. Speculation about a bullish trend in Bitcoin’s price intensifies, fueled by expectations of U.S. securities regulators approving a spot Bitcoin exchange-traded fund. Despite this, the 2024 halving won’t be the last, with the Bitcoin miner reward expected to halve 34 times until reaching zero, aligning with the maximum supply of 21 million Bitcoin projected to be reached around 2140.