What is Bitcoin Halving?
Every four years, the reward for Bitcoin mining is halved ā the so-called halving. But what does this mean exactly? Here's a simple explanation.
What is Bitcoin Halving?
Bitcoin halving is a central event in the Bitcoin network ā yet many don't know what exactly happens. We explain it clearly and practically.
What happens during halving?
Every 210,000 blocks (approximately every 4 years), the reward for miners is halved:
- Initially: 50 Bitcoins per block
- Currently (2024): 3.125 Bitcoins
- Next halving: 2028, then 1.5625 Bitcoins
Why is this important?
Halving reduces the amount of "new" Bitcoin. This means:
- Bitcoin becomes scarcer over time
- Creates a deflationary system
- Increases awareness of digital saving
What does this mean for you?
- Halvings often influence market cycles (not guaranteed!)
- Many use them as guidance for long-term strategy
- It's a good time to re-engage with Bitcoin
Conclusion
Bitcoin halving is a hardcoded part of the system ā and a reminder of why Bitcoin is unique.
Note: This article is for educational purposes only. It is not financial advice.