A Simple History of the Bitcoin Halving and What Investors Can Do
The Bitcoin halving is less than 3 weeks away and the eyes of the crypto world and finance, in general, are fixed on this flourishing market with questions of what the future holds. There are a large number of crypto experts whose views differ, from suggesting that halving is the beginning of a massive bull run, to some who expect a long-term sideways shift, or those who think this is the end. To fully understand what the implications of “halving” mean to the many hodlers around the world, it’s important to look back at the two previous halvings for BTC block rewards and understand the dynamics behind the market movements during these periods.
The first Halving took place on November 28, 2012, and saw the newly minted coins drop from 50 to 25 while the most recent Bitcoin Halving occurred on July 9th, 2016 which saw the block reward to fall from 25 newly minted Bitcoins to 12.5 newly created coins. Both of these events saw significant price adjustments both prior and post halving. The first halving saw the price climb an astonishing 9500% in the year to follow the initial halving date, while the second iteration of the “halving” saw the price jump 3000% over the coming year and a half. This in large part can be tied to the digital scarcity that comes from the rewards being cut in half.
The historical data definitely leads one to think that the coming halving would be similar to that of the past, but this time around the world’s climate is certainly a little different. Investors are more experienced with the cycle and what to expect before and after these events. The industry is booming and major organizations seemingly coming on board day by day. It’s undoubtedly going to be an intriguing time and one we will look back to in the pages of history when the next halving takes place in 2024.