The May 2020 halving will be the third halving in Bitcoin's history, but what happened during the previous halving of 2016?
It was the second halving, it happened in the block number 420,000Excerpted at 6:46 PM on July 9, 2016.
It was the first block in the history of Bitcoin where the miner who managed to validate it was assigned only 12.5 BTC as a reward.
In fact, until the previous block, the reward was 25 BTC, which had already been halved once on November 28, 2012 with the 210,000 block.
Only 1,257 transactions were included in the 420,000 block on July 9, 2016, with a total fee of 0.57569681 BTC. Therefore, the miner collected a total of 13,07569681 BTC.
Everything happened without any particular problem, although in the following days the block time increased to 11 minutes, compared to the 9 minutes of the blocks before the event.
Bitcoin's halving and hashrate
In the three weeks after halving, Bitcoin's hashrate dropped from about 1.7 Ehash / s to 1.3, a drop of about 23%.
This decrease was only temporary as after just over a month after halving the hashrate went back to 1.7 Ehash / s, in fact even the increase in block time was limited (+ 22%) and only temporary.
Therefore, from a strictly technical point of view, the 2016 Bitcoin halving went smoothly and with very little impact on network performance. Also, it was widely advertised and expected, therefore, no one was prepared.
The bitcoin price in 2016 after halving
In regards to price, the impact was more significant.
Until the end of May 2016, the price had remained fairly constant, fluctuating more or less around $ 430. However, from May 26 onwards, the price sharply increased, which brought it to $ 770 on June 18, about three weeks before halving.
At that point, it first fell to just over $ 600 and stabilized around $ 670 in the days leading up to halving. Two days before halving, on July 7, it fell to $ 620, but immediately recovered to $ 670 in 5 days.
However, in late July, the price fell back below $ 570. It remained below $ 600 until September 3, while a slow but steady increase began on September 4, first bringing it to over $ 800 on December 21, 2016, and then more than $ 1,100 on January 4, 2017.
This was very close to the previous record high, which occurred in December 2013, but was followed by a sharp pullback to $ 750 on January 12.
In other words, from mid-December 2016 to mid-January 2017 there was a month of great volatilityfollowed by a run full-blown clumsy.
In fact, in early February 2017, the price had already returned to more than $ 1,000, and in March it had already exceeded the previous maximum by more than $ 1,200.
Therefore, during the middle of 2016, the price rose from $ 430 to $ 670, and then fell again to $ 570 in the following months.
About two months after halving, started a bullfight which brought the price back above $ 750, with a momentary peak close to the previous all-time high, and was followed by a second bullfight that led the price to exceed the previous all-time high, eight months after halving.