Bitcoin Halving Explained
Bitcoin halving is an event that occurs every 210,000 blocks, or roughly every four years, in the Bitcoin network. During the halving, the block reward that miners receive for adding a new block to the blockchain is cut in half. This means that the rate at which new Bitcoin is created is also reduced by half, which can have an impact on the supply and demand dynamics of the cryptocurrency.
The most recent Bitcoin halving occurred on May 11, 2020, and reduced the block reward from 12.5 BTC to 6.25 BTC. This event is significant because it reduces the rate at which new Bitcoin is created and can potentially have an impact on the price of Bitcoin.
Some investors and analysts believe that the Bitcoin halving can lead to a significant increase in the price of Bitcoin because it reduces the rate at which new supply is entering the market. However, it’s important to note that the relationship between the Bitcoin halving and the price of Bitcoin is not always straightforward, and many other factors can also influence the price of the cryptocurrency.
