Halving, also known as “halving” or “block reward reduction,” occurs in cryptocurrencies. This event occurs when a certain number of blocks have already been created in the blockchain, and as a result, the reward miners receive for their work decreases.
In the case of Bitcoin, halving occurs every 210,000 blocks, which is approximately 4 years. During the halving, the reward for creating a new block is halved. Initially, when Bitcoin launched in 2009, the reward was 50 BTC per block.
• the first halving in 2012, the reward was reduced to 25
• for the second time in 2016 - up to 12.5.
• The reward is currently 6.25 BTC per block.
Whole halving
🟠Halving controls inflation and limits the supply of new Bitcoins on the market. Reducing the block reward slows down the introduction of new BTC into circulation, which can increase its value.
🟠Halving encourages miners to save the Bitcoins they create and wait for their value to increase. The reduced reward may not justify the cost of mining, so miners may be interested in holding onto the coins until their value increases.
Tradition
Halving is an important event in the life cycle of a cryptocurrency and usually attracts the attention of the community and investors. The theory goes that it can also influence market dynamics and the price of BTC.
There were 3 cycles (according to the number of halvings)
Xs became smaller with each halving
The time to reach the peak after halving increased
Year-end institutional spot ETF
