As of Bitcoin’s historic first halving on November 28, 2024, it will be 12 years old. After that it was executed on this day in 2012 when Bitcoin block network executed its first programmed halving at block 210 000, cutting the block rewards from 50 BTC to 25 BTC.
As a core part of the design of Bitcoin as created by its creator Satoshi Nakamoto, this mechanism guarantees the decreasing issue of new BTC until the total supply limited at 21 million happens. The first halving occurred when the price of BTC was only $12.20 and the crypto was in its infancy with a dedicated community of miners and crypto fans.
Bitcoin’s Historic Journey: The Impact of the First Halving
The halving was seen as kicking off a price surge despite a fear of disruption to miner revenues. In 2013, Bitcoin shot up to more than $1,000 by the end of the year, indicating that the world was starting to see BTC for what it really was: a scarcity inspired value proposition.
About every four years the block reward gets halved causing it to always come out as a deflationary asset by reinforcing itself. The last halving happened on April 19, 2020, with the block reward cut to 3.125 BTC. Anticipated in April 2028, this next halving will bring reward back down to 1.5625 BTC, and the last halving in at 2140.
On a day where BTC celebrates a milestone, its price inches closer to $100,000. Profit taking and then some macroeconomic concerns sent prices down to $90,682 from a peak in the mid $99,000s previously this week. But Bitcoin came back, hitting $97,386 on Wednesday.
The first halving of Bitcoin is a demonstration in how a foundation of scarcity can lead to true value. The cryptocurrency is just inches away from $100,000 and serves as a reminder that Satoshi Nakamoto’s visionary design had lasting effects.
