The event of bitcoin halving occurs when the number of bitcoins created by the network per block (reward) is slashed in half. It occurs about every four years and slows the rate at which new bitcoins are created, making bitcoin scarce over time and aiding in the management of inflation.
On November 28, 2012, the block reward was cut from 50 bitcoins to 25 bitcoins, marking the first halving of bitcoin. This halving was intended to occur every 210,000 blocks, or roughly every four years.
On July 9, 2016, the block reward was cut from 25 bitcoins to 12.5 bitcoins, marking the second halving of bitcoin. This triggered a major bull run in the cryptocurrency market, as investors and dealers predicted a scarcity of fresh bitcoins, driving up the price from $12 to $1,100 in the following 4 years.
On May 11, 2020, the block reward was cut from 12.5 bitcoins to 6.25 bitcoins, marking the third halving of bitcoin. This event was regarded as a watershed moment for bitcoin and the cryptocurrency community, since it signaled a significant decrease in the supply of new bitcoins entering the market, making the price of bitcoin increased from $650 to $64,000 in the following 4 years
Each halving event has traditionally had a substantial impact on bitcoin’s price, since decreasing supply has raised demand and scarcity. bitcoin halving is a crucial event in the cryptocurrency market since it has a direct impact on bitcoin supply and demand, and consequently its price.
The goal of halving is to regulate the supply of bitcoins and keep the cryptocurrency scarce. Each halving event has had a significant impact on the price of bitcoin and the overall cryptocurrency market.
The next halving is scheduled for 2024, decreasing the mining reward to 6.25 bitcoins. The cryptocurrency community is eagerly awaiting this occasion, and many think it will positively affect the price of bitcoin and the industry as a whole.
See Also: How Bitcoin Works And It’s Technical Details
