Bitcoin Halving Analysis: Will Bitcoin Really Reach KRW 100 Million? Why Bitcoin Goes Up

Hello, this is Bitpunk. Today, let's talk about the Bitcoin halving. First, let's look at the chart analysis below. Since an anonymous developer named Satoshi Nakamoto created Bitcoin in 2009, there have been two halvings so far. The block reward (every 10 minutes) started at 50 bitcoins per block, and after two halvings it has now dropped to 12.5 bitcoins.

Bitcoin Halving and Price

Looking at the trend so far, the price of Bitcoin has risen through each halving. But if you look closely at the price, it did not shoot up sharply right before or after a halving. In fact, the price sometimes fell, and then rose significantly as time went on. Perhaps the halving was already priced in. The price does tend to rise through halvings, but I think it may be that, along with the halving itself, the related news coverage and the boost to buying sentiment are what tend to push the price up.

Two Bitcoin Halvings, and the Third One Coming Up

A Bitcoin halving happens about once every four years on average. "Halving" means that the block reward miners receive for mining is cut in half. This keeps the supply of Bitcoin controlled in a fixed way, and this is the key difference between Bitcoin and fiat currency, which has unlimited supply.

There have been two halvings so far, on November 28, 2012 and July 9, 2016. At the time of the first halving, the price of Bitcoin was about 12 dollars, and at the second halving it was about 650 dollars. For reference, there will be 64 Bitcoin halvings in total, and after that there will be no more. As you can see in the table below, a halving takes place every 210,000 blocks. Going through this halving process, Bitcoin mining is expected to wrap up around the year 2140.

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