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$97,093.00
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1d: +2.04%
7d: -2.91%
$0.00001351
+2.04%

Bitcoin Halving

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Table of contents
    1. 0.2. How Bitcoin Halving Works
    2. 0.4. Why Bitcoin Halving Shapes the Market
    3. 0.6. Bitcoin Halving’s Role in Crypto’s Evolution

Bitcoin Halving is an event that occurs roughly every four years, reducing the reward that miners receive for adding a new block to the blockchain by 50%. It’s a core part of Bitcoin’s monetary policy designed to control inflation and ensure that the total supply of Bitcoin never exceeds 21 million.

How Bitcoin Halving Works

Initially, miners earned 50 BTC per block. After the first halving in 2012, the reward dropped to 25 BTC, then to 12.5 BTC in 2016, and then to 6.25 BTC in 2020. The next halving, expected in 2024, will lower the reward to 3.125 BTC. This steady reduction happens every 210,000 blocks mined, about every four years.

Why Bitcoin Halving Shapes the Market

Bitcoin halving events are significant because they reduce the rate at which new Bitcoins are created. This scarcity often leads to increased demand, which historically has been followed by sharp price increases. Many investors closely watch halving events as key moments that could influence Bitcoin’s value.

Bitcoin Halving’s Role in Crypto’s Evolution

Beyond just price speculation, Bitcoin halving reinforces the idea of Bitcoin as a deflationary asset. It highlights Bitcoin’s contrast to fiat currencies, which can be printed without limit, and plays a vital role in maintaining the credibility of the Bitcoin network.