Bitcoin’s block reward slashed by 50% following 2024 halving (2024)

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Bitcoin’s block reward slashed by 50% following 2024 halving? ›

Bitcoin last halved on April 19, 2024, resulting in a block reward of 3.125 BTC. The final halving is expected to occur in 2140, when the number of bitcoins circulating will reach the theoretical maximum supply of 21 million.

The most recent Bitcoin halving occurred on 19 April 2024, when block 840,000 was mined. As a result of that halving, now 3.125 new bitcoins (down from 6.25) are created roughly every 10 minutes.

Known as a Bitcoin halving, such events happen roughly every four years. With the 2024 halving complete, the block reward that miners collect now stands at 3.125 BTC — down from 6.25 BTC.

The Bitcoin network completes the fourth-ever 'halving' of rewards to miners. The Bitcoin network on Friday evening completed its fourth “halving,” reducing the rewards earned by miners to 3.125 bitcoins from 6.25.

The Bitcoin halving, also known as “the halvening,” is the name for one of the most hotly anticipated recurring events in Bitcoin's history. In April 2024, the number of bitcoin entering circulation every 10 minutes – known as block rewards – will drop by half, from 6.25 to 3.125 BTC.

On April 19, 2024, the block reward for bitcoin miners was reduced by half, from 6.25 BTC per mined block to 3.125 BTC per mined block. However, you wouldn't know it from the lack of fanfare. No bells were rung, no fireworks lit up the sky, and the price of bitcoin remained relatively stable at around $64,000.

Our most recent Bitcoin price forecast indicates that its value will increase by 14.58% and reach $66,426 by May 03, 2024.

After all 21 million bitcoin are mined, which is estimated to occur around the year 2140, the network will no longer produce new bitcoin. The block subsidy will go to zero but miners will continue to receive transaction fees, which will make up an ever greater portion of the block reward.

The reward for mining is 6.25 bitcoins. In April 2024, it will drop to 3.125 bitcoins. It takes the network about 10 minutes to mine one block, so it will take 10 minutes to mine 3.125 bitcoins.

The block reward is fixed at 6.25 BTC. Future block reward and hash rate changes are not taken into account. The average block time used in the calculation is 599 seconds. The electricity price used in generating these metrics is $ 0.12 per kWh.

Will Bitcoin mining be profitable after halving? ›

“Miners need their revenues to be more than their costs, like any business,” Malekan says. “What is likely to happen after the halving is that some miners will no longer be profitable, and they will stop mining.”

The past three halvings – in 2020, 2016 and 2012 – have resulted in an average price increase of 16% over the 60 days that followed, according to data from the asset research firm 10x Research. The 2016 halving resulted in a decrease of 6% over the following 60 days, although it then rallied strongly throughout 2017.

This reward is reduced by half every four years, hence the term halving. It's akin to a predictable, scheduled pay cut for these miners. Halving not only adjusts miners' rewards. It also reduces the rate at which new coins are created, decreasing the new supply and influencing the market value.

A block reward is a financial incentive given to cryptocurrency miners for validating blocks of transactions on a blockchain. The reward is typically a portion of transaction fees and cryptocurrency tokens newly minted by the blockchain network.

Consider this: if it were universally anticipated that bitcoin's value would surge immediately following the 2024 halving, investors would likely move to acquire bitcoin before the event, driving up its price in the present rather than in the future.

Fifth halving and beyond: Future halvings will continue at intervals of approximately 210,000 blocks, or roughly every four years, reducing the block reward until the maximum supply of 21 million Bitcoins has been reached. This is estimated to happen in the year 2140.

As of 2024, approximately 19.4 million bitcoins have been extracted, indicating that more than 92% of the entire available amount is currently in use. This leaves fewer than 2 million bitcoins yet to be mined​​.

Bitcoin halvings will occur every 210,000 blocks until around 2140, when all 21 million coins will have been mined.

Fourth halving: The Bitcoin fourth halving is anticipated to occur around mid-April 2024, reducing the block reward from 6.25 Bitcoins to 3.125 Bitcoins per block.

A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half. Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply. Bitcoin last halved on April 19, 2024, resulting in a block reward of 3.125 BTC.