What is the Bitcoin halving?
Bitcoin halving is an event that occurs roughly every four years (whenever 210,000 blocks of transactions have been processed) that cuts the reward for mining Bitcoin transactions in half. This mechanism decreases the rate at which new bitcoins are generated, thereby limiting the supply and increasing scarcity of new Bitcoin.
Halvings are significant because they can lead to an increase in Bitcoin's price due to this scarcity if demand for Bitcoin continues or grows. Historically, halving events have often preceded periods of price increase, although many factors can influence Bitcoin's market value. This process is integral to Bitcoin's design, aiming to ensure its long-term value and stability.
The next halving will reduce block rewards to 3.125 BTC.
