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Bitcoin halving countdown — when is the next Bitcoin halving?

Andrew Munro
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What is the Bitcoin halving?

The Bitcoin halving is when its block rewards are cut in half. When this happens, new Bitcoin is only created half as fast as before. This makes it scarcer and theoretically more valuable.

This is a regular occurrence that happens on a schedule that’s built into Bitcoin’s programming. It happens every 210,000 blocks. The first was in 2012, the second in 2016 and the third is expected to occur around May 20, 2020, when the Bitcoin network reaches block number 630,000.

The first halving The second halving The third halving
November 28, 2012 July 9, 2016 May 20, 2020 (estimated)
50 BTC to 25 BTC 25 BTC to 12.5 BTC 12.5 BTC to 6.25 BTC

Check out our Bitcoin 101 guide on how it works and where to get it

How does the Bitcoin halving work?

Each halving sharply reduces Bitcoin’s inflation rate. This halving process is what gives Bitcoin its distinctive supply curve.

It works by reducing the amount of new Bitcoin that miners earn from finding a block on the Bitcoin blockchain, with the overall effect of reducing Bitcoin’s inflation rate.

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Why is the halving important?

The halving is important for Bitcoin-watchers, because it may affect Bitcoin prices.

It’s believed to affect prices because it reduces Bitcoin’s inflation rate, which makes it more scarce and theoretically more valuable. Bitcoin’s annual inflation rate is currently around 4%, but after the next halving it will drop to around 2%.

Why is there a Bitcoin halving?

Bitcoin was intended to become increasingly scarce over time, specifically for the purpose of retaining monetary value. It was designed this way because the functionality of the Bitcoin network depends on the coin retaining its value.

The regular halvings are designed to support this by consistently reducing the supply of Bitcoin.

Will Bitcoin prices rise because of the halving?

It’s not possible to say with certainty what Bitcoin prices will do in the future, but if you subscribe to the theory that Bitcoin’s value is based on supply and demand, then it stands to reason that limiting the supply would correspond with a price rise.

Historically, Bitcoin prices have enjoyed brief rises prior to the halving from people trading on the anticipation, then longer, larger rises afterwards, as the additional scarcity does its part.

The first halving: November 28, 2012

The first Bitcoin halving was in November 2012 and Bitcoin prices steadily rallied in the lead-up. BTC prices were less than $4 at the start of the year and hit $13 by the end.

To date, that was the last time anyone could buy Bitcoin for less than $13.

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Source: 99Bitcoins

Sentiment ran high through November as the first ever Bitcoin halving approached and prices steadily increased throughout November in anticipation of the first halving. Bitcoin enthusiasts threw halving parties and people watched to see what it would do to the prices.

The impact was substantial and the halving clearly had a major impact on how people perceived the value of a Bitcoin.

The second halving: July 9, 2016

The second halving, on July 9, 2016, was also preceded by high volumes and enthusiastic trading. The market impact of the event is clearly visible.

That price slump after the second halving was people’s last chance, to date, to buy Bitcoin for less than $600.

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Source: CoinMarketCap

This time anticipation peaked a month before the event, resulting in a sell-off and then an eventual run-up towards the end of the year.

In contrast to the parties and enthusiasm of the first halving, market-watchers were more practical and jaded this time around. The general consensus seemed to be that Bitcoin had peaked at $750 and that anyone hoping for major results from the second halving would be disappointed.

But six months later Bitcoin was nearing $1,000.

The third halving: May 20, 2020

May 2019 was a good month for Bitcoin prices. It started at around $5,000 and finished at $8,500. June replicated the feat, taking Bitcoin up to $14,000 before it pulled back.

It’s not possible to say whether this is pent-up anticipation for the next halving, but it’s clear that each of Bitcoin’s halvings has resulted in it settling into new price tiers. Each Bitcoin halving to date has had a significant impact on Bitcoin and a lot of people are expecting the next one to do the same.

Looking to buy or sell Bitcoin?

Here are exchanges where you can buy or sell Bitcoin in the US. Alternatively, you can take a look at our step-by-step guides on how to buy Bitcoin and how to sell Bitcoin.

Name Product Deposit methods Fiat Currencies Supported Cryptocurrencies
Kraken Cryptocurrency Exchange
Kraken Cryptocurrency Exchange
Electronic Funds Transfer
Bank transfer (SEPA)
Wire transfer
USD, EUR, GBP, JPY, CAD
BTC, ETH, XRP, BCH, EOS, LTC, ADA, XLM, DASH, XMR, USDT, ETC, QTUM, ZEC, REP, DOGE, GNO, MLN, ATOM, XTZ
Buy, sell and trade a range of digital currencies on this high-liquidity exchange – suitable for beginners right through to advanced traders.

UK residents: In addition to normal crypto trading, Kraken offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
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eToro Cryptocurrency Trading
eToro Cryptocurrency Trading
Credit card
Debit card
Neteller
PayPal
Wire transfer
Yandex Money
China Union Pay
Giropay (Sofortüberweisung)
Skrill Limited UK
WebMoney
Wire
Local Online Banking
EUR, GBP, NZD, USD, AUD, CAD, CHF, NOK, ZAR, JPY, SEK, TRY, HUF, PLN
BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ
Disclaimer: Highly volatile investment product. Your capital is at risk. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. US users have limited access to some of eToro’s features.

Copy the trades of leading cryptocurrency investors on this unique social investment platform.
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Binance Cryptocurrency Exchange (Not available to US users)
Binance Cryptocurrency Exchange (Not available to US users)
Cryptocurrency
–
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: US users have been restricted from accessing Binance since September 2019.
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Cointree Cryptocurrency Exchange - Global
Cointree Cryptocurrency Exchange - Global
Cryptocurrency
-
BTC, ETH, XRP, BCH, EOS, XVG, LTC, ADA, MIOTA, TRX, NEO, DASH, XMR, XEM, VET, ETC, ICX, QTUM, OMG, & 70+ more
Buy and trade 100+ cryptocurrencies on this global cryptocurrency exchange.
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Coinbase Digital Currency Exchange
Coinbase Digital Currency Exchange
Credit card
Debit card
AUD, USD, EUR, GBP, CAD, CNY & 50+ more
BTC, ETH, XRP, BCH, EOS, LTC, XLM, ETC, ZEC, ZRX, REP, BAT, LINK, DAI, USDC
Get US$10 in free bitcoin when you buy US$100 or more of any crypto. T&Cs apply.
Buy and sell major cryptocurrencies on one of the world's most renowned cryptocurrency exchanges.
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Coinmama Cryptocurrency Marketplace
Coinmama Cryptocurrency Marketplace
Cash
Credit card
Debit card
Bank transfer (SEPA)
USD, EUR
BTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRP
Buy coins like Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash with credit card.
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VirWox Virtual Currency Exchange
VirWox Virtual Currency Exchange
Credit card
Debit card
OKPAY
PayPal
SOFORT
EUR, USD, CHF, GBP
BTC
Buy bitcoin through PayPal on one of the oldest virtual currency exchanges in the business.
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CEX.IO Cryptocurrency Exchange
CEX.IO Cryptocurrency Exchange
Credit card
Cryptocurrency
Debit card
Bank transfer (SEPA)
SWIFT
USD, EUR, RUB, GBP
BTC, BTG, BCH, LTC, DASH, ETH, XRP, ZEC, XLM, GUSD
Disclaimer: Highly volatile investment product. Your capital is at risk.
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
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bitFlyer Cryptocurrency Exchange - US
bitFlyer Cryptocurrency Exchange - US
Bank transfer
Credit card
Cryptocurrency
Wire transfer
USD, EUR, JPY
BTC, ETH, BCH
With options to buy bitcoin and popular altcoins through credit card, wire transfer and more, BitfFyer offers users the choice of paying with cryptocurrency or USD, EUR and JPY.
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SatoshiTango Cryptocurrency Exchange
SatoshiTango Cryptocurrency Exchange
Bank transfer
Cash
Cryptocurrency
Bank transfer (SEPA)
ARS, USD, EUR
BTC, LTC, XRP, ETH, BCH
SatoshiTango is an Argentina-based marketplace that allows you to easily buy, sell or trade Bitcoins.
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Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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