According to the BTC protocol, BTC’s total supply is 21 million, and the amount of BTC generated per block with rewards is set to decrease geometrically, with a 50% reduction every 210,000 blocks. The average BTC block generation interval is 10 minutes, so that BTC halving occurs every 4 years. The upcoming halving will occur when its block height reaches 840,000.
A controllable monetary inflation rate is one of the main differences between cryptocurrencies and traditional fiat currencies. If block halving applies to a cryptocurrency, its future supply is predictable. However, a traditional fiat currency has an infinite supply by nature. That is why the price of the cryptocurrency will rise due to its scarcity since halving limits its supply in the future.
Halving could send BTC’s price much higher than in the past. As of today, two BTC halvings have occurred on November 28, 2012 (BTC price: USD12.3) and July 9, 2016 (BTC price: USD650.6). The price of BTC soared 5,289% between the first and the second halving. The fourth halving of BTC is coming soon.
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