In the cryptocurrency industry, few occasions generate as much excitement and anticipation as the Bitcoin halving. This meticulously timed event underscores Bitcoin’s uniqueness as a programmable, scarce and deflationary form of money.
Unlike traditional currencies, Bitcoin has a limited and predictable amount. Its issuance is governed by an internal mechanism known as halving, implemented since the inception of the Bitcoin protocol. This mechanism halves the rewards given to miners for validating transactions every 210,000 blocks mined, which happens approximately every four years.
This code snippet is responsible for calculating the block reward based on the block height (nHeight) and Bitcoin consensus parameters. As the number of halvings increases (every 210,000 blocks), the initial reward of 50 bitcoins is divided by two raised to the power of the integer quotient of the block height divided by 210,000.
int64_t GetBlockSubsidy(int nHeight, const Consensus::Params& consensusParams) {
int halvings = nHeight / consensusParams.nSubsidyHalvingInterval;
// Force block reward to zero when right shift is undefined.
if (halvings >= 64)
return 0;
int64_t nSubsidy = 50 * COIN;
// Subsidy is cut in half every 210,000 blocks which will occur approximately every 4 years.
nSubsidy >>= halvings;
return nSubsidy;
}The next bitcoin halving, scheduled for approximately April 20, means that the reward for miners will be reduced to 3,125 bitcoins per block.
As the chart shows, this event has had a historically significant impact on the price of bitcoin. It has generated a notable increase in interest from those operating in the cryptocurrency space, as well as from investors and other outside observers.
– The vertical lines mark the timing of each halving.
– The black line reflects the historical trajectory of the Bitcoin price.
– The color spectrum represents the best periods for buying (blue shades) and selling (red shades).
In summary, the upcoming Bitcoin halving, beyond its impact on price, highlights the deflationary nature and inherent scarcity of this cryptocurrency. Currently, nearly 19.7 million bitcoins have been issued, although it is estimated that around 20% are “lost”, implying that the available supply is even tighter. This limited supply not only influences its current value, but also strengthens its appeal as a store of value against fiat money.
Want to keep reading about blockchain technology? Don’t miss these resources!
- The ultimate guide to the Bitcoin Blockchain
- Harnessing the potential of the blockchain in business
- Exploring the blockchain technology
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