Bitcoin Halvings — What They Are, Why They Happen, and Why You Should Care

Bitcoin halvings reduce the rate
at which a new bitcoin is created by half. Halvings are an automatic process built
into the network and they occur each time Another 210,000 blocks are mined,
which normally takes about four years. Hey there, my name is Trevor with CMC
and today we're going to be talking and Discussing Bitcoin, having what they are,
Why they happen, and why you should care. When Satoshi Nakamoto
created Bitcoin in 2008, You realized that he needed to release
Bitcoin gradually into the market In order to prevent early adopters
from hoarding it, which would have slowed Adoption or even stopped
most people from using Bitcoin at all. After deciding to limit the supply to 21
million coins, Satoshi implemented A mechanism which would release Bitcoin
in a predictable way. Over time, every 210,000 blocks,
which we call a having halvings, it Mostly affected Bitcoin miners Who confirm Bitcoin transactions
and add new blocks to the blockchain. Using computing power. The network rewards miners With Bitcoin for their work,
which is how new Bitcoin is created. After each halving Bitcoin miners receive
half as much bitcoin for their services And this makes mining more competitive
and also encourages miners To source cheaper sources of fuel
to also power their operations. And it might seem illogical for miners
to continue Working for half as much profit over
a new bitcoins are scarcer After each halving, which should increase
the value of each coin. Indeed, price data shows that historically
Bitcoin does increase in value After each halving, thereby helping
miners recover lost earnings over it. Just because something has happened In the past doesn't mean
it's guaranteed to do so in the future. And the Bitcoin mining reward
will have 32 times Before Bitcoin's full supply of 21
million coins Will have been reached
and this should happen by 2140. So cheers to us not alive. And to date, 19,370,000 coins
have been mined before the first halving Bitcoin miners received an enormous block
reward of 50 Bitcoin per block. But as of May of 2023,
after three halvings,

The block reward has been reduced
to 6.25 BTC per block, and over time The impact of each having will diminish
as the block reward approaches at zero. So what happens during the last having What The last having took place On May 11th of 2020,
during the height of the pandemic, Bitcoin's price increased by 19%
during the year leading up to an event From a $7191
to $8560 over the 500 in 46 days. Following the halving,
Bitcoin rocketed 680% To $67,549 per coin, Which is its all time high,
which was reached on November 8th of 2021. The preceding having occurred on July 9th. Bitcoin's price increased 142%
during the 12 months preceding that, Having from $269 to $651 by Christmas
the following year. Bitcoin's value had soared at 2,824% To $19,000,
which was its all time high at the time. And similarly, the first ever Bitcoin
halving in November of 2012 saw Bitcoin's price increase 384% From $2.55 to $12.35. When is the next Bitcoin having Bought the next Bitcoin having will take place at block
840,000, which is estimated to be on April 7th of 2024 and this is about 300 days
away at the time of this video. So on this day, the block mining
reward will drop from 6.25 Bitcoin to 3.125 Bitcoin per block. Bitcoin tends to bottom at 12 to 18 months
prior to the halving event And historically has performed well
leading up to the having catalyst event. So do bitcoin
having changed the price of bitcoin Well as shown here past having to do Seem to have an effect on Bitcoin's price
during the year Following every having Bitcoin's
price has risen between 384 to 2824%. But that doesn't necessarily mean
that having impact Bitcoin's price. It's possible
the two events are correlated, But that halvings don't directly influence
the price. The next having could see Bitcoin's

Price rise by 81%,
according to Bloomberg Intelligence. But not everyone agrees that such a bull
run is written in the stars. Second, having, for instance,
Bitcoin's price increase by nearly 3,000%. But it happened at the time
when Bitcoin was being covered extensively By the media and its positive price
momentum was already very strong. It also coincided with surging interest
in ICOs or initial coin offerings, many Of which required investors to buy Bitcoin
before they could get involved. It's also worth noting
that Bitcoin's price has historically Sat consistently higher after each halving
before the 2016, halving, for instance, Bitcoin's value
generally hovered at around $600, Whereas after the having its value rose
to about $18,000 And then hovered at between 3000 $512,000
until these subsequent having in 2020. The same pattern can also be seen
following the 2020 halving after Which bitcoin's price
has hovered between 20000 to $35000. So how do Bitcoin halvings affect miners? Well,
after the third halving back in 2020, Whole market cap actually spoke
with 16 Shin Yu Mao, who founded Bitcoin mining pool F2 Pool
about how the decrease in block rewards Affected the bitcoin mining industry
now said that the loss of profitability For miners had not been greater
than they had expected him. He did note, however, that a Bitcoin habit
event means that miners have to decide If they can afford to continue mining,
and that might mean looking for lower Electricity costs and also other ways
that they can save on overall costs To keep their mining machines
running and also earning new coins. Some argue that the price increases
Bitcoin has experienced following past Having has more than compensated miners
for the lower number of Bitcoin earned For mining each block. To put it another way, miners are earning
fewer bitcoins, but those bitcoins Are worth more than double
what they were before the halving. So what are your price predictions
when there is the bitcoin having That happens in close to around 300 days,
let us know in the comments down below.