#halvingbinance

What is a halving?

The Bitcoin halving is a regular event that cuts miners’ rewards in half, essentially reducing the issuance of new Bitcoins.

Satoshi Nakamoto designed Bitcoin with a maximum supply of 21 million units. This design makes BTC a deflationary and relatively scarce asset. The predictability of issuance and periodic reductions in the block reward are among the most important characteristics of Bitcoin. Over time, a halving event increases demand for the asset while simultaneously reducing its production rate.

At the beginning of Bitcoin’s existence, the block reward was 50 BTC. The first Bitcoin halving took place in 2012, reducing the amount to 25 BTC per block. The event was repeated in 2016 and 2020, resulting in the current block reward of 6.25 BTC. The Bitcoin halving in 2024 reduced the block reward to 3.125 BTC.