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2016The second halving

The block reward halved again, the year ended with Bitcoin back near $1,000, and developers quietly worked on the upgrade that would arrive in 2017.

Year-end price (approx.)

~$960

Block reward

25 → 12.5 BTC

Second halving

Jul 9, 2016

What happened

1. Jan 14

   Former core developer Mike Hearn announces he is leaving the project, calling Bitcoin a failed experiment amid the block-size dispute.

2. May 2

   Craig Wright publicly claims to be Satoshi Nakamoto. The claim is widely rejected, and a UK High Court ruled in 2024 that he is not Satoshi.

3. Jul 9

   The second halving at block 420,000 cuts the reward from 25 BTC to 12.5 BTC.

4. Aug 2

   Hackers steal about 120,000 BTC from the Bitfinex exchange.

5. Dec

   Bitcoin closes in on $1,000 again, having more than doubled during the year.

Why it mattered

Mining and trading were far more professional than at the first halving, and the Bitfinex theft showed that custody risk had not gone away.

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