Every 210,000 blocks (approximately every 4 years) since Bitcoin’s inception, the reward that miners receive for finding a block halves. This event is referred to as the “Bitcoin halving” and is hardcoded into the Bitcoin protocol to enforce its deflationary monetary policy. In this article we will be covering 7 facts that you need to know about the 2020 Bitcoin halving, let’s dive right into it.
2020 Bitcoin halving facts
The 2020 Bitcoin halving is expected to happen at the end of May. However, keep in mind that the date of the halving is not decided by the normal calendar, but by the amount of blocks that have been mined. If difficulty drops, the halving may happen a few weeks later.
The Bitcoin halving in May 2020 will be the third halving the currency undergoes. The first halving happened in November 2012, and the second one happened in July 2016.
In the 2020 Bitcoin halving mining rewards will drop from 12.5 Bitcoins per block, to 6.25 Bitcoins per block. This will reduce Bitcoin’s yearly inflation to 1.8%, in contrast, Gold’s yearly inflation averages 3%. This is precisely why many people call Bitcoin “Digital Gold”.
Bitcoins generated per day
At a block reward of 12.5 Bitcoins per block and block time of 10 minutes, miners are currently generating 1,800 Bitcoins a day. After the 2020 Bitcoin halving, this number will be reduced to just 800 new Bitcoins per day.
How many bitcoins
At the time of the 2020 halving, 18,375,000 Bitcoins will have been mined in total. That’s approximately an 85% of the total Bitcoin supply.
Both halvings that Bitcoin has had so far have had served as powerful price catalysts. Right after the first halving in 2012, the Bitcoin price rose from $12 to $140. Weeks after the second halving in 2016, Bitcoin started a rally that propelled its price from $582 to $20,000.
What do I need to do?
If you are a regular Bitcoin holder then there is nothing that you need to do. You can just keep your coins in your wallet like you regularly do. On the other hand, if you are a Bitcoin miner you will have to closely monitor your profitability since your block reward will be reduced by 50%.
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