#BTC
Bitcoin Reward in Cryptocurrencies
The Bitcoin reward, or what is known as "Bitcoin Halving", is an important periodic event in the world of cryptocurrencies. This halving occurs every 210,000 blocks, approximately every four years, and reduces the reward for mining new blocks by 50%.
This programmed procedure in the Bitcoin protocol aims to control inflation and create scarcity in the supply of the digital currency, as the maximum number of Bitcoins is 21 million coins. Historically, halvings are often preceded by a rise in the price of Bitcoin, as investors anticipate a decrease in the supply of new coins.
The halving directly impacts Bitcoin miners, as their rewards decrease for verifying transactions and adding new blocks to the blockchain. This may lead to some less efficient miners temporarily exiting the market until mining difficulty adjusts or the price of Bitcoin rises to compensate for the reduced reward.