Bitcoin graph code#

Satoshi set the initial block reward at 50 BTC. The leftmost block represents Bitcoin’s earliest period, during which time it was largely unknown to the general public. Time Span: January 9 th 2009 to November 28 th, 2012.

We’ll examine each of Bitcoin’s 4 “ages” in turn, starting from the reddish block on the left. Let’s examine this chart in depth, as it helps to clarify the price effect of previous halvings. One of the best ways to gauge what effect the new halving will have on price is to look at a price chart with all previous halvings demarcated:Ĭourtesy of on Twitter, this logarithmic chart shows Bitcoin’s price against halvings. As to be expected, there were large fluctuations in the Bitcoin in the months surrounding this event. The last Bitcoin Halving took place on July 9th, 2016 which caused the block reward to fall from 25 new Bitcoin created to 12.5 new Bitcoin created. Decreasing bitcoin supply increases scarcity, which historically has led to a higher value. Increasing supply has the effect of making fiat money less scarce, thus reducing its value-that’s why prices rise rapidly when inflation is high. For this reason, Bitcoin halvings serve as major milestones in Bitcoin’s timeline, dividing it into distinct periods.īut why does this affect the price? Just as multiplying the available supply of fiat currency has dramatic knock-on effects for a country’s economy, most notably rampant inflation, halving the supply of bitcoin is a major economic change with wide-reaching consequences.

Bitcoin graph code#

In order to extend the life of Bitcoin and ensure that it remains a deflationary asset, Satoshi Nakamoto wrote into Bitcoin’s code that the supply of new BTC awarded to miners is halved every 210,000 blocks, or roughly every 4 years. Yet there is also a finite number of Bitcoins that can ever be created. In this article, we’ll explain what a Bitcoin halving is, and will look at its historical price impact.įor every block a miner adds to the blockchain, he or she is rewarded with a certain amount of newly-created Bitcoin. If you’re unsure how halvings work or why they’re significant, you may also be wondering why they’re relevant to price. The third such event in Bitcoin’s history, it’s projected to occur in mid-May of this year. The next Bitcoin halving will soon be upon us, and many people expect it to have a positive effect on the Bitcoin price.