What is the Bitcoin Halving?
You know what is the Bitcoin halving? Every four years, BTC price become halving. When BTC halves, the reward for miner securing the network is cut by 50%. It slows the rate that new Bitcoins enter circulation. This is known as the halving day.
Every 10 minutes in early of 2020, 12.5 new Bitcoins were added to the network through virtual "mining." In May 2024, that amount was halved to 6.25. It will halved again to around 3.125. This process will continue until 21 million coins are mined. This process created by Satoshi Nakamoto. This protocol control the total supply of Bitcoin.
What Happens When Bitcoin Halves?
When Bitcoin halving, the number of new Bitcoins become half. Say differently, contributor rewards for validate transactions and added them to the blockchain was cut by 50%. This event is built into the Bitcoin protocol. It happens every four years or after 210,000 blocks.
Why is the Bitcoin Halving Important?
When Bitcoin halves, the reward given to the contributors for securing the network is reduced by 50%. It directly impacting the new Bitcoins circulation. There are 21 million BTC and the halving makes fewer of it. The halving rewards to making BTC more scarce.
This scarcity combined with the previous halving events. The rarity lead to potential upward pressure on prices.
