#IMPORTANTE What is Bitcoin halving?
Bitcoin halving is a scheduled event that occurs approximately every four years and halves the reward that miners receive for validating new transactions and adding blocks to the Bitcoin blockchain.
Why does halving occur?
Halving is a fundamental feature of Bitcoin's design. Its main purpose is to control inflation and maintain the scarcity of the cryptocurrency. By reducing the number of new bitcoins created over time, the total supply is limited, which can potentially increase its value.
How does halving work?
When Bitcoin was created, a maximum limit of 21 million coins was established. To circulate these coins, miners are incentivized to validate transactions and add new blocks to the blockchain. In exchange for their work, miners receive a reward in bitcoins.
Halving reduces this reward by half every four years. Initially, the reward was 50 bitcoins per block. After the first halving, it was reduced to 25, then to 12.5, and so on. This process continues until all 21 million bitcoins have been mined.
What is the impact of halving?
Historically, halving has had a significant impact on the price of Bitcoin. The reduction in the supply of new bitcoins can lead to an increase in demand, which in turn can drive the price up.
Additionally, halving also affects the profitability of Bitcoin mining. By reducing the reward, miners may need to adjust their operations to remain profitable. This can lead to consolidation in the mining industry, with larger and more efficient miners taking a greater market share.
Next Bitcoin halving
The next Bitcoin halving is estimated to occur in April 2024.
In summary
Bitcoin halving is an important event that occurs every four years and halves the reward for mining new blocks.