The Bitcoin halving is a periodic event that occurs every 210,000 blocks mined, approximately every four years. During a halving, the block reward, which is the payment miners receive for confirming transactions on the network, is halved.
Halving was implemented in Bitcoin's code to ensure that the total supply of bitcoins is limited to 21 million units. The first block reward was 50 bitcoins, which was reduced to:
25 Bitcoins in the first halving, in 2012.
12.5 Bitcoins in the second halving in 2016.
6.25 Bitcoins in the third halving in 2020.
Bitcoin's next halving is scheduled to take place in 2024. When this happens, the block reward will be reduced to 3,125 bitcoins.
Therefore, halving is an important event in the Bitcoin economy. It has a significant impact on the currency price, mining and the total supply of bitcoins.
Making the currency rarer, because it reduces the amount of new bitcoins that are created with each block. This means that over time there will be fewer bitcoins available, which makes the currency more scarce.
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