The third bitcoin halving: reducing the block reward from 12.5 BTC to 6.25 BTC

The third Bitcoin halving (block 630,000) was a significant event when the reward for mining Bitcoin transactions was cut in half from 12.5 to 6.25 bitcoins. Halvings are scheduled to occur once every 210,000 blocks – roughly every four years – until the maximum supply of 21 million bitcoins has been generated by the network.
 

This halving was particularly noteworthy due to the global economic uncertainty and market volatility at the time, heightened by the COVID-19 pandemic. It served as a test for Bitcoin’s resilience and its anti-inflationary properties. The event was surrounded by speculation and predictions about its potential impact on the price and miner activity.
 

Historically, halving events have been associated with bullish market behavior. The first halving in 2012 saw Bitcoin’s price increase substantially in the following year. Similarly, the second halving in 2016 led to a significant price rise within 12 months. The third halving followed this trend, with Bitcoin’s price rising from approximately $8,727 to $55,847 within a year after the event.
 

The halving is an integral part of Bitcoin’s economic model and is designed to control inflation by reducing the rate at which new bitcoins are created. As the reward for mining decreases, the scarcity of Bitcoin increases, which historically has led to an increase in price, although this is not guaranteed.
 

The anticipation and aftermath of the third halving also highlighted the cycles of fear, uncertainty, and doubt (FUD) that can influence public perception of Bitcoin. Despite various predictions of Bitcoin’s demise, the cryptocurrency has continued to grow and gain mainstream adoption.