Bitcoin halving is explained as an event in which the rate at which new bitcoins are created halves. It occurs every four years.
As many know, Bitcoin cryptocurrency (BTC) supply is limited. As soon as 21 million coins are generated, the network will no longer produce any more.
This is one of the main reasons why Bitcoin cryptocurrency is often referred to as “digital gold”
Just like yellow metal, there is only a limited amount worldwide, and one day everything will have been extracted completely and there will be no Bitcoin cryptocurrency left to mine
There are currently around 18 million BTC in circulation, which is approximately 85% of the total circulation supply. However, this does not mean that the Bitcoin crypto will soon reach its limits.
The reason for this is the protocol encoded in the bitcoin blockchain right from the start
After Every 210,000 blocks are mined caleed Bitcoin halving, the production of new coins becomes more difficult
Just like gold mining where finding new deposits over time becomes more difficult.
In particular, the protocol cuts the block reward in half every time bitcoin halving occurs, miners receive 50% less BTC for ever verified transaction.
Read more about Bitcoin Halving 2020
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