What is the bitcoin halving? Will the bitcoin supply be cut in half?

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Adriaan Admin

Staff member
Jan 30, 2018
Some people misinterpret the concept of halving in bitcoin (or any other cryptocurrency); some seem to confuse it with the idea of cutting the total supply of the coin in half. However this is not the case: halving refers to the halving of the BLOCK REWARD, which is the amount of bitcoin the miners receive for mining. The block reward from mining increases the circulating supply of the coin at a certain rate, and when there is a halving, it means that the inflation will be cut in half. In the case of bitcoin the halving is part of the algorithm. Every 210,000 blocks (roughly every 4 years, because each blocks takes more or less 10 minutes) the block reward will be cut in half. Next halving is estimated end of May 2020, where the block reward will go from 12.5 BTC to 6.25 BTC. After that probably in 2024, 2028 etc.

Because the inflation goes down with the halving, will the price go up?
Well, technically speaking the approximate dates and rates of inflation are known well in advance, we should assume that the lower inflation is already priced in by the market. However, it is not ruled out that hype in the price may potentially occur either shortly before and/or after a halving regardless. Markets can be equally rational as irrational in that regard.