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

The first halvingThe second halvingThe third halving
28 November 20129 July 2016May 2020 (estimated)
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 $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.

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 $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 $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: 20 May 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 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
CoinSpot Cryptocurrency Exchange
Bank transfer (ACH)
AUD

234
cryptocurrencies

CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 150 cryptos.
Swyftx Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, Osko, PayID
AUD

225
cryptocurrencies

Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.
Binance Cryptocurrency Exchange Australia
Credit card, Cryptocurrency, Debit card, Osko, PayID
USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 40+ more

263
cryptocurrencies

Finder Exclusive: Get $5 cashback when you make your first PayID/Osko deposit on Binance.com/au.
Binance is the world’s largest exchange by trading volume. Get started with instant zero fee AUD deposits and withdrawals in Australia, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 local customer support.
Digital Surge Cryptocurrency Exchange
BPAY, POLi, PayID
AUD

225
cryptocurrencies

A digital exchange based in Brisbane where users can pay in AUD to buy their BTC.
CoinJar Cryptocurrency Exchange
Bank transfer (ACH)
AUD, GBP

15
cryptocurrencies

CoinJar offers a simple way to buy, sell, or trade cryptocurrency with AUD. Enjoy free and instant deposits, fees start from 0.05% and withdrawals are free to your bank account
eToro Cryptocurrency Trading & CFDs
Bank transfer (ACH)
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. $1,000 minimum deposit.
Easy Crypto Cryptocurrency Exchange
Bank transfer (ACH)
AUD

53
cryptocurrencies

Easy Crypto is a simple way to buy and sell a range of cryptocurrencies, straight to and from your own crypto wallet.
Coinmama Cryptocurrency Marketplace
Bank transfer (ACH)
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.
Cointree Cryptocurrency Exchange
Bank transfer (ACH)
AUD

132
cryptocurrencies

Buy 100+ cryptocurrencies using POLi, cash or Electronic Funds Transfer.
Independent Reserve Exchange
Cryptocurrency, Electronic Funds Transfer, POLi, SWIFT, PayID
AUD, NZD, USD

15
cryptocurrencies

Trade AUD and other fiat currencies against a wide range of cryptos at competitive rates.
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