Bitcoin Celebrates 11th Anniversary of First Halving
## Bitcoin’s Historical Milestones
Bitcoin (BTC), the largest cryptocurrency by market value, experienced its first-ever halving 11 years ago today. As the community celebrates the anniversary of the first Bitcoin halving, it’s timely to revisit some of Bitcoin’s historical milestones ahead of the next halving expected in April 2024.
### The First Bitcoin Transaction
The first Bitcoin transaction occurred nearly 15 years ago on Jan. 3, 2009, a few months after the pseudonymous creator of Bitcoin, Satoshi Nakamoto, published the Bitcoin white paper in October 2008.
### The First Halving Event
On Nov. 28, 2012, or three years and ten months after Bitcoin’s initial block was mined, the first-ever halving event took place. At the time, BTC traded at just around $12, which was 308,200% below Bitcoin’s current price.
The white paper hints at certain mechanisms to control the creation of new BTC, though the Bitcoin halving — as well as the digital currency’s 21 million supply cap — is not directly described in Nakamoto’s white paper.
### Bitcoin Halving Mechanism
The halving mechanism had been programmed into the BTC mining algorithm as a way to counteract inflation by maintaining scarcity.
Before the first halving occurred, miners were compensated with as much as 50 BTC per block. After the first halving event in 2012, the subsidy was slashed to 25 BTC, followed by the second halving in 2016, which reduced the subsidy to 12.5 BTC. The most recent Bitcoin halving occurred in 2020, cutting the block subsidy from 12.5 BTC to 6.25 BTC.
### Impact on BTC Price Cycle
As Bitcoin halvings significantly increase the cryptocurrency’s scarcity, the Bitcoin price cycle has been historically impacted by halvings. Just a year after its first-ever halving, Bitcoin had risen to nearly $1,000, while the second halving triggered a 350% surge during the year after the event.
The anniversary of the first Bitcoin halving comes as the cryptocurrency community awaits the fourth Bitcoin halving, which is now expected to occur on April 17, 2024. Many Bitcoin advocates are especially bullish on the Bitcoin price in 2024 amid growing expectations that United States securities regulators could finally approve a spot Bitcoin exchange-traded fund.
The 2024 halving won’t be the last one, though. Bitcoin miner reward is expected to be halved 34 times until it reaches 0 BTC after all 21 million Bitcoin are mined. Based on the current schedule, the maximum supply of 21 million bitcoins will be reached around 2140.
The entire Bitcoin community is anticipating the next halving and the potential impact it may have on the cryptocurrency. As the anniversary of the first halving is celebrated, the countdown to the fourth Bitcoin halving begins.
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