What happens when Bitcoin halves?
When Bitcoin goes through a halving, the number of new Bitcoins produced is halved. To put it differently, miners who verify transactions and add them to the blockchain experience a 50% decrease in their rewards.
This event is hardcoded into Bitcoin's protocol and occurs approximately every four years, or after block 210,000.
Why is the Bitcoin halving important?
When Bitcoin halving, the reward given to contributors who maintain the security of the network is reduced by 50%, which directly affects the rate at which new Bitcoins come into circulation. Since there are only 21 million Bitcoins and the halving reduces their number, the halving makes bitcoin more scarce.
This inherent scarcity, combined with the surge in demand experienced after previous halvings, creates a sense of digital scarcity that can contribute to potential upward pressure on price
