Bitcoin halving has huge implications for its economic model and impacts the cryptocurrency market. This event occurs approximately once every four years and consists of reducing the reward for mining a new block by half. This is a mechanism that ensures a limited number of bitcoins in circulation - only 21 million.
For miners, halving means a decrease in reward for their work. They receive half the bitcoins for each new block, which could affect their profitability and lead to an exodus of miners if mining becomes unprofitable. However, the Bitcoin protocol adjusts the mining difficulty to keep the block time constant.
Halving also affects the Bitcoin ecosystem. Halving the rate at which new bitcoins are introduced into circulation counteracts inflation. Historical experience shows that after halving, the price of Bitcoin can increase significantly, as demand for it increases while supply decreases.
The collapse of Bitcoin after the halving attracts the attention of the media and the public, which contributes to wider awareness of cryptocurrencies and their principles of operation.
After the final Bitcoin halving, when the entire supply of 21 million Bitcoins has been mined, the main incentive for miners will be transaction fees. This will ensure the continuity of the network and could make Bitcoin an even more in-demand asset.
The Bitcoin halving highlights its scarcity and potential long-term value. This event plays a central role in Bitcoin's economic model and is generating interest and discussion within the cryptocurrency community.