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Bitcoin halving countdown: When is the next Bitcoin halving?

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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, which 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 in 12 May 2020, when the Bitcoin network reaches block number 630,000.

The first halvingThe second halvingThe third halving
28 November 20129 July 201612 May 2020
50 BTC to 25 BTC25 BTC to 12.5 BTC12.5 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 simply 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 designed to become increasingly scarce over time, specifically for the purpose of retaining monetary value. This was by design, 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: 28 November 2012

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

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

Picture not described

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: 9 July 2016

The second halving, on 9 July 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 US$600.

Picture not described

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 US$750 and that anyone hoping for major results from the second halving would be disappointed.

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

The third halving: 12 May 2020

May 2019 was a good month for Bitcoin prices. It started at around US$5,000 and finished at US$8,500. June replicated the feat, taking Bitcoin up to US$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 Australia. 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 Cryptocurrencies
Credit card
Cryptocurrency
Debit card
Bank transfer (via third party)
USD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH, KZT & 23+ more

202
cryptocurrencies

Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.
UK residents: In addition to normal crypto trading services, Binance 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.
Credit card
Debit card
Neteller
PayPal
Wire transfer
Online banking
EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK & 5+ more

16
cryptocurrencies

Disclaimer: Volatile investment product. 75% 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.
Copy the trades of leading cryptocurrency investors on this unique social investment platform.
Bank transfer (ACH)
Credit card
Bank transfer (SEPA)
Faster Payments Service
Skrill
USD, EUR, GBP, RUB

23
cryptocurrencies

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.
Electronic Funds Transfer
Wire transfer
Osko
PayID
Ethana Custody
USD, EUR, GBP, JPY, CAD, CHF, AUD

34
cryptocurrencies

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.
StormGain Cryptocurrency Exchange
Cryptocurrency
USD, EUR, AUD, CHF, CZK, DKK, GBP, HUF & 5+ more

23
cryptocurrencies

Stormgain aims to make cryptocurrency trading easy, and also lets you buy crypto with fiat via Simplex.

UK residents: In addition to normal crypto trading, Stormgain 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.
AdvCash
Credit card
Debit card
Neteller
Payeer
USD, EUR, GBP, CAD, JPY

9
cryptocurrencies

Buy Bitcoin and other popular cryptocurrencies with credit card or debit card on this digital cryptocurrency exchange.

US residents: Restricted in the following states - NY, CT, NM, WA, HI, AL, VT, FL, AK, NV.
Credit card
Debit card
Bank transfer (SEPA)
SWIFT
USD, EUR, AUD, CAD, GBP, JPY

10
cryptocurrencies

Founded in 2013, CoinMama lets you buy and sell popular cryptos with a range of payment options and quick delivery.
Credit card
Cryptocurrency
USD

387
cryptocurrencies

CoinSwitch allows you to compare and convert over 250 cryptocurrencies across all exchanges.
Cash
Credit card
Cryptocurrency
PayPal
Western Union
DZD, XCD, ARS, AMD, AWG, AUD, AZN, BSD, BHD, BDT & 140+ more

1
cryptocurrency

Connect with bitcoin buyers and sellers through this peer-to-peer marketplace that accepts cash, credit and more than 300 other payment methods.
Cryptocurrency
USD, EUR, GBP, JPY

165
cryptocurrencies

Cryptocurrencies are a highly volatile investment product. Your capital is at risk.
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
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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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