Are You Waiting for Bitcoin Halving to Gain Profits? Well, it Might Not Even Happen
Speculations about Bitcoin being phased out sooner are mostly incorrect and obscure
Bitcoin hash rate – the computational effort required to secure the network – is approaching historical highs, prompting some Twitter users to express concern about an accelerated Bitcoin halving schedule (the reward for mining a block is halved approximately every four years). According to a developer, the Bitcoin algorithm prevents the halving schedule from being accelerated. Every 10 minutes, Bitcoin miners process transactions and compete to add a new block to the Bitcoin blockchain. Several factors (such as the number of miners or technological advancements) can disrupt that 10-minute rhythm, making mining blocks slightly easier or more difficult. To maintain the 10-minute block time, the Bitcoin algorithm monitors the level of difficulty and adjusts it every 2,016 blocks (roughly every two weeks).
The algorithm also governs the number of Bitcoins miners receive as a reward for processing transactions and securing the network. Miners received 50 Bitcoins for successfully mining a block when Bitcoin first launched in 2009. That reward (known as a “subsidy”) is halved every 210,000 blocks (roughly every four years), with the next halving scheduled for 2024. So, can an increase in hash rate push that date to 2023, as some claim? No, is the short answer. Changes in hash rate will have little effect on the Bitcoin halving schedule because the Bitcoin algorithm prevents wild variations in block time by adjusting the difficulty to match whatever external conditions exist at the time. There may be minor changes in dates here and there, but nothing major enough to shift the halving schedule from 2024 to 2023.