{"id":946,"date":"2020-05-10T05:41:21","date_gmt":"2020-05-10T05:41:21","guid":{"rendered":"https:\/\/blog.bitflyer.com\/en-us\/?p=946"},"modified":"2024-01-18T07:33:35","modified_gmt":"2024-01-18T07:33:35","slug":"what-is-the-bitcoin-halving-and-how-will-it-impact-the-bitcoin-price","status":"publish","type":"post","link":"https:\/\/blog.bitflyer.com\/en-us\/what-is-the-bitcoin-halving-and-how-will-it-impact-the-bitcoin-price\/","title":{"rendered":"What is the Bitcoin Halving and how will it impact Bitcoin’s price?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

\u201cWhen will the Bitcoin Halving happen?\u201d \u201cExactly what is Halving? How will the price be affected?\u201d<\/p>\n\n\n\n

Do you find yourself asking these types of\nquestions? <\/p>\n\n\n\n

Let\u2019s talk a little bit about what \u201cHalving\u201d means, and why the price of Bitcoin fluctuates with the occurrence of this \u201cHalving\u201d.<\/p>\n\n\n\n

What is the Halving? <\/strong><\/h3>\n\n\n\n

As the term suggests, the halving is when \u201csomething is decreased by half\u201d. In the cryptocurrency industry, the term is used to refer to when the issuance of a virtual currency is halved.<\/p>\n\n\n\n

In addition to Bitcoin, Bitcoin Cash, Litecoin and other cryptocurrencies also have Halvings. But here we will take a look specifically at Bitcoin, which is approaching its halving.<\/p>\n\n\n\n

The term \u201cBitcoin halving\u201d means that the supply of Bitcoin to the market in the form of mining rewards<\/a> is decreased by half. <\/p>\n\n\n\n

After a Halving has taken place, the supply will drop by half, and if demand does not decrease proportionately, the price could rise. We will explain later why we say \u201ccould\u201d instead of \u201cwill\u201d here. <\/p>\n\n\n\n

Bitcoin has already experienced two halvings, with this one being the third. With the upcoming Bitcoin halving, mining rewards will be halved from 12.5 BTC to 6.25 BTC per block. As past halvings have seen sharp rises in BTC prices, the event has recently caught the attention of investors.<\/p>\n\n\n\n

When will the third Bitcoin Halving occur? <\/strong><\/h3>\n\n\n\n

The Bitcoin Halving occurs approximately once every four years. The timing of the next halving is often described vaguely as \u201cmid-May 2020\u201d <\/strong>and there is a reason why the date and time cannot be given in more specific terms. <\/p>\n\n\n\n

The measure of time that we generally use can be expressed in terms of \u201chours, minutes, and seconds\u201d, with time passing as the seconds tick by on a clock. Bitcoin time, on the other hand, advances in blocks<\/a>, not in seconds. <\/p>\n\n\n\n

The next halving of Bitcoin expected to occur tomorrow, for example, can be expressed in terms of the number of blocks generated, namely 630,000 blocks. However, the time taken to generate a block can only be stated as \u201cabout 10 minutes\u201d, and is not a perfectly constant interval. It cannot be represented exactly by the kind of date and time with which we are familiar. <\/p>\n\n\n\n

You can see the newest block by checking our Blockchain Explorer, chainFlyer<\/a>.<\/p>\n\n\n\n

\n
\"\"<\/figure>\n<\/figure>\n\n\n\n

The Halving of Bitcoin occurs every 210,000 blocks (approximately every 4 years), and will continue until the last of 21 million Bitcoins is mined, which is thought likely to be around 2140. This means that, because the supply of Bitcoins over the entire network will decrease over that time, the inflation rate for Bitcoin will fall at every halving.<\/p>\n\n\n\n

What is the impact of halving on Bitcoin\u2019s price? <\/strong><\/strong><\/h3>\n\n\n\n

As of April 2020, approximately 1800 BTC\/day are\nbeing newly generated in the network, but after the halving this will fall to\n900 BTC\/day. Ahead of the 2020 halving, approximately 18.37 million BTC, or\napproximately 87.5% of the total, have already been mined, with only the\nremaining 12.5% available to be mined over the next 120 years. <\/p>\n\n\n\n

Based on this alone, one would expect that the\nprice of Bitcoin will go up because the inflation rate will go down, but it is\nnecessary to understand that the price of Bitcoin depends on other factors as\nwell. It is possible to derive the theoretical post-halving price of BTC using\nthe stock to flow ratio (S2F), which indicates the scarcity of BTC. However,\nthis analysis is entirely based on BTC supply, and does not take demand or\nminers withdrawing from the market into account. <\/p>\n\n\n\n

The halving means that the mining rewards per block\ndecrease along with the decline in the inflation rate, so mining may become\nless attractive and miners may withdraw from BTC mining or begin mining\nalternative currencies. Should this occur, the network value of Bitcoin would\nbe reduced, possibly affecting the BTC price.<\/p>\n\n\n\n

In forecasting future prices, it is necessary to fully consider the demand side and the behaviour of miners. While this is hard to forecast, after this Halving, the annual supply of Bitcoin will fall from about 4% now to 2%, making it more likely to benefit from increased demand. While the halving is a one-off event, it is already priced in by many people because they have always known what would happen. Be sure to take a dispassionate approach to trading.<\/p>\n\n\n\n

Create an account here<\/a> or log in here<\/a>.<\/strong><\/p>\n\n\n\n

<\/p>\n\n\n\n

Notes (please read carefully) <\/strong><\/strong><\/p>\n\n\n\n

This material is intended to provide reference\ninformation on bitFlyer Co., Ltd. and related industries, and is not intended\nas a solicitation for services provided by the Company.<\/p>\n\n\n\n

The Company and the Expositor endeavour to provide\naccurate information in this material, but do not guarantee its completeness or\naccuracy. \n\nIn addition, the\ncontents of, and statements included in this material may include the personal\nopinions of the Expositor. The Company and the individual Expositor will not be\nheld responsible for any adverse events arising from content presented herein.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cWhen will the Bitcoin Halving happen?\u201d \u201cExactly what is Halving? How will the price be affected?\u201d Do you find yourself asking these types of questions? Let\u2019s talk a little bit …<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,10],"tags":[21,65,78,80,26,7,12,70,79,77,63,81],"class_list":["post-946","post","type-post","status-publish","format-standard","hentry","category-learn-bitcoin","category-learn","tag-bitcoin","tag-bitcoin-cash","tag-bitcoin-halving","tag-bitcoin-trading","tag-bitflyer-exchange","tag-bitflyer-usa","tag-cryptocurrency","tag-cryptocurrency-trading","tag-ethereum","tag-halving","tag-litecoin","tag-trading"],"_links":{"self":[{"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/posts\/946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/comments?post=946"}],"version-history":[{"count":7,"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/posts\/946\/revisions"}],"predecessor-version":[{"id":1649,"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/posts\/946\/revisions\/1649"}],"wp:attachment":[{"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/media?parent=946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/categories?post=946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.bitflyer.com\/en-us\/wp-json\/wp\/v2\/tags?post=946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}