Bitcoin is a revolutionary digital currency, known for its decentralized nature and limited supply. One of the most important mechanisms controlling this supply is called Bitcoin halving. Understanding this event helps explain why Bitcoin remains scarce and why it has gained value over time.
This article explains what Bitcoin halving is, why it happens, and how it impacts the network, miners, and market.
What Is Bitcoin Halving?
Bitcoin halving is a programmed event that reduces the reward miners receive for adding new blocks to the Bitcoin blockchain by half. This happens automatically in the Bitcoin protocol to regulate the number of new bitcoins entering circulation.
When Bitcoin was created by Satoshi Nakam...
Bitcoin is a revolutionary digital currency, known for its decentralized nature and limited supply. One of the most important mechanisms controlling this supply is called Bitcoin halving. Understanding this event helps explain why Bitcoin remains scarce and why it has gained value over time.
This article explains what Bitcoin halving is, why it happens, and how it impacts the network, miners, and market.
What Is Bitcoin Halving?
Bitcoin halving is a programmed event that reduces the reward miners receive for adding new blocks to the Bitcoin blockchain by half. This happens automatically in the Bitcoin protocol to regulate the number of new bitcoins entering circulation.
When Bitcoin was created by Satoshi Nakamoto, miners earned 50 bitcoins per block. Over time, this reward decreases through halving events. Many still debate today: is Satoshi Nakamoto alive (https://blog.mexc.com/who-is-satoshi-nakamoto/) or has the creator vanished forever?
How Does Bitcoin Halving Work?
Bitcoin’s network is maintained by miners, who validate and record transactions. As an incentive, miners are rewarded with newly minted bitcoins.
A Bitcoin halving occurs every 210,000 blocks, which is roughly every four years. At each halving event, the block reward drops by 50%.
