Bitcoin halving occurs approximately every four years, reducing the rate of new bitcoins entering circulation.
It is governed by the Bitcoin protocol and involves miners solving mathematical problems through the proof-of-work mechanism to validate transactions before adding them to the blockchain.
Miners are rewarded with $BTC for solving these problems, and the process, requiring substantial computing power, takes around 10 minutes.
The first halving in 2012 reduced rewards from 50 to 25 bitcoins, with subsequent reductions to 12.5 in 2016 and 6.25 in 2020. The next halving is expected in 2024 after 21,000 blocks.
Halving regulates bitcoin supply, fostering scarcity and averting inflation. Historically, halving events coincide with significant increases in bitcoin prices due to reduced supply and sustained or increased demand. Traders, aware of this trend, often take long positions during halving events.
To learn more about bitcoin halving, read up this article .
Don't forget to like, share, and follow @Ozuru .
