Bitcoin Halving Countdown
What is Bitcoin Halving?
Bitcoin halving is the process of decreasing the rewards of bitcoin mining in half. It is one of the main parts of the Bitcoin economic model which has a huge influence on various parts involved in Bitcoin’s network.
How does the Bitcoin halving work?
The Bitcoin economy implies a periodic reduction of reward for mining a block by half. This process has the frequency of every 210,000 mined blocks or approximately once per four years. Also, it means that after each Bitcoin halving it would be harder to mine Bitcoin. The latest and third halving took place in May 2020. The next is expected in a few years.
Why are halvings important for Bitcoin?
Bitcoin halving is developed to cap the total number of bitcoins. As its total supply is fixed at 21 million, the creation of new bitcoins will be done after its number reaches its maximum supply. Bitcoin halving reduces the rate of newly released bitcoins into circulation, making bitcoin more scarce, and ultimately, more valuable.
Apparently, the number of crypto enthusiasts who want to mine bitcoin would fall with the completion of each halving. Despite this fact, bitcoin halving leads to a spike in the bitcoin price, which stimulates miners to mine more.
Does halving have any effect on the bitcoin price?
Statistics show us a positive correlation between bitcoin halving and its price. However, pay attention that price is not only affected by halvings, it also depends on other factors.
- After the first halving in 2012, the price of bitcoin moved from $11 to $12, and within a year, the price increased to $1,100.
- In 2016, it was the second bitcoin halving. So its price ranged between $500-$1,000 for a few months and then shot up to $20,000 by December 2017.
- In May 2020 the third halving occurred. The bitcoin price was around $9,000 and several months later, bitcoin is trading near $20,000.
How is our timer calculated?
To make our countdown more accurate we are using live blockchain statistics to obtain an estimation of the current average Bitcoin block time. Then, we use this number in the calculation formula.
The Bitcoin Halving timer on the P2PB2B exchange is calculated using the following formula:
(Halving block – Current height) * Average block time (latest 500 blocks)