A Bitcoin halving is a programmed event in the Bitcoin network that reduces the reward miners receive for validating and adding new blocks to the blockchain by 50%. This event occurs roughly every four years (every 210,000 blocks) and continues until all 21 million bitcoins have been mined.
By cutting the block reward in half, the halving slows the rate at which new bitcoins enter circulation, functioning as a built-in monetary policy designed to introduce scarcity over time.
The halving mechanism is central to Bitcoin’s economic model because it ensures that supply becomes increasingly limited while demand can grow based on broader adoption, investment, and utility. Historically, halvings have been associated with long-term price appreciation due to the decreasing amount of new BTC available for miners to sell into the market.
This supply compression, paired with Bitcoin’s fixed maximum supply, positions the asset as a digital form of scarce money rather than an inflationary currency.
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