What is Bitcoin Halving

Orange Lightning

Bitcoin halving, happening every four years, cuts miner rewards in half, slowing new coin creation and potentially driving up Bitcoin's value due to increased scarcity, here are some things to know. 

1

Scheduled Reduction

Bitcoin halving is a programmed event that cuts the reward for mining new bitcoins in half, roughly every four years.

2

Scarcity Control

Halving reduces the rate new bitcoins enter circulation, mimicking finite resources like gold and potentially impacting value.

3

Supply and Demand

With a limited supply increase, demand can rise due to scarcity, potentially leading to a price increase for Bitcoin.

4

Historical Effect

Past halvings have often been followed by significant price increases, though past performance doesn't guarantee future results.

5

Market Buzz

Halving events attract investor and trader attention, causing speculation and potentially increased volatility in the market.

6

Miner Economics

Halving directly impacts miners' profitability, some may need to adapt operations or shut down if costs outweigh rewards.

7

Network Security

The hash rate, a measure of computing power dedicated to mining, is crucial for network security.