Unraveling the Mysteries of Bitcoin Halvings: A Fun Guide for Curious Minds

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Have you been searching for a fun and easy way to explain the bitcoin halving to your kids, or maybe some adults that are kids at heart? Great news! We’ve got you covered right here!

Be sure to stay until the end for a special halving surprise.

What is the bitcoin halving?

Imagine bitcoin as a big treasure hunt, and miners are the brave adventurers searching for treasure. Every now and then, the treasure they find gets a bit smaller, and that’s what we call a halving.

The bitcoin halving is an event that happens in the Bitcoin network’s code. It’s a rule that says, “Every 210,000 blocks mined, we’re going to cut the reward for miners in half!” This means miners get fewer bitcoins as a reward for solving complex math problems and adding new transactions to the Bitcoin blockchain.

How often does the bitcoin halving happen?

The Bitcoin protocol is designed so that every 210,000 blocks mined, the reward for miners gets cut in half. Since blocks are mined roughly every 10 minutes on average, this means that a halving event occurs approximately every four years. So, it’s a special event that occurs not too often, like a birthday or a holiday.

How many bitcoin halvings have there been?

Since Bitcoin started its adventure in 2009, there have been three halvings. The first one was in 2012, the second in 2016, and the third in 2020. The 2024 halving will reduce the amount of treasure automatically included in each block from 6.25 to 3.125, or roughly $200,000.

What was the bitcoin block subsidy before the first halving?

Before the first halving, miners got 50 bitcoin as a thank you for each block they mined. It was like finding a big pile of treasure with each successful mining attempt! Those 50 bitcoin would now be worth over $3,000,000 today, but were worth (basically) nothing in 2009. WHOA!

What will the bitcoin block subsidy be before the last halving?

Up until the very last halving, which will happen around 2036 with a block subsidy of only .00000001, the bitcoin earned will keep decreasing until it reaches zero in 2040. That means miners won’t get any new bitcoins as a guaranteed reward for mining blocks once that happens. It’s like saying, “Sorry, adventurers, the treasure chest is empty now, but you can still keep the adventure going for the fun of it…and some tips!” In this case, those tips are transaction fees paid by people that are using the Bitcoin network.

How will bitcoin miners be compensated after the last halving?

After the very last halving, when the bitcoin block subsidy reaches zero, miners will still receive rewards, but they will come only from transaction fees paid by people sending bitcoin transactions. It’s like saying, “Even though there are no more new treasures to find, you can still earn a little something from the people who use bitcoin for their transactions. It’s like being rewarded for helping make sure the treasure map (the blockchain) stays safe and secure!”

So there you have it! Everything you need to know about the fun that is the bitcoin halving.

Want to celebrate even more? Use code halving24 for 31.25% off your order* until 4/25/24!

*Excludes plush products.

What is SHAmory?

SHAmory is one of the leading providers of Bitcoin educational products for all ages. Our flagship product, SHAmory, is a STEM Authenticated Bitcoin card game for kids and adults. Selected as Best in STEM 2021 by Newsweek magazine and STEM.org, it is the perfect mixture of fun and education for anyone interested in learning about Bitcoin. Learn the basics of how mining works while earning Bitcoin rewards for each block you mine. SHAmory players will not only have a blast while playing, they will also be exposed to key features that have kept the Bitcoin network secure over the past decade. This simple exposure will help individuals become more comfortable with Bitcoin and create the next generation of Bitcoin HODLers.

SHAmory recently expanded our product line with the books, Goodnight Bitcoin and If You Give a Monster a Bitcoin. Goodnight Bitcoin tells the story of Satoshi and Hal as they attempt to create the impossible, a new money called Bitcoin. If You Give a Monster a Bitcoin answers the question, “what would happen if you gave the SHAmory monsters a bitcoin?” Read along with your family and friends to learn how this simple act can send our little monsters down the Bitcoin rabbit hole and make the world a better place. You can purchase any of our products directly on our website. Be sure to follow @PlaySHAmory on TwitterFacebook or Instagram.