The halving is an event in which the block reward of a cryptocurrency is divided in half in order to reduce its emission level. It was initially implemented in Bitcoin and since then it is one of the most important processes in its economic system.

H alving, is an automated process of halving the bitcoins miners receive as a reward for creating a block. It was created to encourage mining through work test . This by setting with every certain number of blocks, the emission should be cut in half.

The first cryptocurrency to implement this process was Bitcoin. All this is because the amount of bitcoins that may come into existence is finite and is established in the Bitcoin software at 21 million bitcoins. Not one more. Bitcoin software establishes that bitcoins will be released for reward miners as they create blocks validating transactions, at a rate of every 10 minutes on average.

However, the number of bitcoins that are released is not always the same, it is established by the software that each certain number of blocks is halved. This automated process is called halving and is used to establish a certain time until the end of the issue of coins to order to pursue a model. deflationary, or what is the same, to gradually increase its value.

Emission limitation

The halving is a mechanism created so that the cryptocurrencies, like bitcoin. To achieve this, this scaling mechanism was established to control the emission.

This issuance generates that there are new cryptocurrencies in circulation and we can buying bitcoins easily. A predictable process of initial democratization for the distribution of the currency that gives the opportunity to avoid that all ends up in a few hands. Satoshi Nakamoto who devised the mechanism in Bitcoin said the following:

The constant addition of a fixed amount of new coins is analogous to that of gold miners who spend resources to add gold to circulation. In our case, it is the CPU time and electricity that is spent

In this way, if we look at the evolution in Bitcoin to the present, we see we have reached the figure of 86,554% of the bitcoins in circulation. We must bear in mind that with the first 210.000 blocks the figure of 50% of the bitcoins in circulation was reached.

Within this period in which we are, 2.625.000 BTC will be added, which will mean reaching 18.375.000 BTC and we will reach the amount of BTC in circulation of 87.5%.

What would have happened without halving in Bitcoin?

This is quite an interesting question. If the halving process didn't exist it would have been a long time since all the bitcoins would have been mined. Therefore, miners will only receive transaction fees as compensation. Fees with little cost since Bitcoin would not have given it time to revalue itself so much that it was profitable to mine.

It would have taken a few years for all the bitcoins to be put into circulation. Initially 50 BTC per block was distributed, which is 300 bitcoins per hour or 7200 bitcoins per day. An amount of 2.628.000 bitcoins would be released annually, which if we divide it by the total possible bitcoins, which is 21.000.000 bitcoins, gives us almost eight years the time it would have taken to put all the bitcoins into circulation.

Projection of added bitcoins in the short term

The table that can be seen below establishes the percentage of bitcoins in circulation with respect to the total and the date on which this figure was reached. We can also see how many bitcoins the period opens and how many it closes, as well as the amount added.

All the halving

The calculations of all the halving are done and it is known how many bitcoins will be awarded for each block from its beginning until the last one is extracted. We are currently in the third stage of halving of the thirty-four stages that will exist.

The last halving will already establish a zero reward or what is the same, the miners will only charge the commissions for the transactions that are made. This will happen in block 6.930.000, which according to the calculations will be in the year 2140, so there is a lot left for this to happen.

As you can see, in the sixth halving the reward for each block will be less than 0.8BTC. Currently each block is rewarded with 12.5 BTC (about € 80.000), so some think that in 2032 a single bitcoin may be worth € 100.000, at least.

No one, we repeat, no one can assure you that Bitcoin can reach this price, but if you are interested in investing in Bitcoin, it is as simple as having a part of the 21 million that will exist, and you do not need to buy an entire one. You can buy as many euros as you want, that if bitcoin doubles in price, your portion will also. If you want to do it in Bit2Me you can do it in a simple way. quickly and safely.

What does halving bitcoin mean?

Halving will be executed automatically. As established in the code, so there will be no break in the network or anything like that. Everything will continue as before. Except that, from that moment on, for each block mined half of BTC will be issued to the world.

Consequences for a normal user

For anyone who uses Bitcoin in their day, day to day when making transactions or sending money around the world, there will be no consequences. You can continue using your portfolio as normal and as you have done so far.

Consequences for a bitcoin miner

Miners are more important players in this case. In a few days we will see if the same computing power is maintained by mining on the network or if a part of the miners will stop mining due to the high cost and little reward (counting that the price of a bitcoin does not rise in price)

Considering that every 10 minutes they will receive 50% less bitcoins, research and the path to more efficient miners could be increasing. It also opens a very wide and exciting range, full of possibilities, for all companies in the sector.

Consequences for speculators

For speculators, a halving may be a perfect time to start raising the price of Bitcoin, as the new reward will make Bitcoin increasingly scarce. This of course, because the emission of Bitcoin is reduced and this leads to demand being greater than supply, thus increasing the price of BTC. In short, "It's fishing in a troubled river", and those who know how to handle themselves in these circumstances will be able to obtain great profits.

How much do you know, cryptonuta?

Is halving unique to Bitcoin?


The halving process is not unique to Bitcoin, other cryptocurrencies also implement it, such as Litecoin or Monero.

How often does a halving happen?

About every 4 years.

Approximately? Halving is complex because it is impossible to predict how long it will take to mine a block. That yes, the software can calculate the time average and based on that time constantly adjust the complexity.

There is a mine complexity readjustment every 2016 blocks. This is done to keep the time between each mined block close to 10 minutes.

To simplify our explanation, we have established that blocks are always generated every 10 minutes. Although this is not always the case, it usually comes very close. Therefore we establish that six blocks are generated per hour. Thus, 75 bitcoins (based on the reward as of this writing, 12.5 bitcoins per block) are added to the network and put into circulation. Those new bitcoins miners may decide to put on the market by wanting to sell them.

To perform the calculation of the halving process we are going to perform a simplified calculation with integers. This is so that the approximate process and deadlines can be understood. We must multiply the 210.000 blocks by 10 minutes (interval between which the blocks are generated). Then divide it by 60 minutes (1 hour = 60 minutes).

Each halving process happens approximately every 35.000 hours, which is equivalent to 1.458 days, that is, 4 years.

Countdown to the next halving in Bitcoin

Surely at this point, you will ask yourself: How long until the next bitcoin halving?Next we put the days and the date.