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11 Years of Bitcoin’s First Halving: A Journey of Price Evolution

Bitcoin Eleven years ago today marked a pivotal moment in Bitcoin's history, as the cryptocurrency experienced its inaugural halving. From its humble beginnings at $12, Bitcoin has since skyrocketed to an impressive $37,000. This celebratory occasion prompts a reflection on Bitcoin's significant milestones leading up to the upcoming halving anticipated in April 2024.Prices on halving
 

Eleven years ago today marked a pivotal moment in Bitcoin’s history, as the cryptocurrency experienced its inaugural halving. From its humble beginnings at $12, Bitcoin has since skyrocketed to an impressive $37,000. This celebratory occasion prompts a reflection on Bitcoin’s significant milestones leading up to the upcoming halving anticipated in April 2024.

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Prices on halving days leading to the next ATH, Chart Source: TradingView

The genesis of Bitcoin can be traced back nearly 15 years, with the first transaction occurring on January 3, 2009, a few months after the release of Satoshi Nakamoto’s groundbreaking white paper in October 2008. Fast forward to November 28, 2012, and the crypto world witnessed the inaugural halving event, occurring three years and 10 months after the mining of Bitcoin’s first block. At that time, Bitcoin was valued at around $12, marking a staggering 308,200% increase compared to its current value.

While Nakamoto’s white paper alluded to mechanisms controlling new BTC creation, the specifics of halving were coded into the Bitcoin source. Described in the Bitcoin Core GitHub repository, the halving feature in the validation.cpp file stipulates that the miner’s block subsidy is halved every 210,000 blocks, manifesting every four years.

A Bitcoin halving-related snippet from the Bitcoin Core repository. Source: GitHub

The introduction of the halving mechanism was a strategic move to counteract inflation by ensuring the cryptocurrency’s scarcity. Before the initial halving, miners received a substantial 50 BTC per block, which was halved to 25 BTC in 2012. Subsequent halvings in 2016 and 2020 further reduced the subsidy to 12.5 BTC and 6.25 BTC, respectively.

Bitcoin Halving 2024: Will BTC Mining Rewards Slashing Turn Less Into More Again? - CoolWallet
Bitcoin Mining rewards after each halving

Historically, Bitcoin halvings have played a pivotal role in influencing its price cycle. Following the first halving, Bitcoin surged to nearly $1,000 within a year, while the second halving triggered a remarkable 350% increase, leading to all-time highs of nearly $20,000 in December 2017. Post the third halving in 2020, Bitcoin reached an impressive $69,000 in November 2021.

As the cryptocurrency community celebrates the anniversary of the first halving, focus shifts to the eagerly awaited fourth halving set to occur on April 17, 2024. Enthusiasts express heightened optimism regarding Bitcoin’s price trend in 2024, driven by the anticipation of regulatory approval for a spot Bitcoin exchange-traded fund by United States securities regulators. While the 2024 halving holds significant importance, it won’t be the final one. The Bitcoin miner reward is slated to be halved 34 times until it ultimately reaches 0 BTC, coinciding with the mining of the 21 millionth Bitcoin, expected around the year 2140 based on the current schedule.

Wasif Shakir

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