Understanding Bitcoin Halving: How It Impacts Prices and Mining Rewards
What is Bitcoin Halving?
Bitcoin halving is a pre-programmed event that happens approximately every four years (after 210,000 blocks). During this event, the mining reward for validating a block is cut in half.
Purpose:
It ensures Bitcoin’s supply is limited, reinforcing its scarcity and acting as a hedge against inflation.
Impact on Miners:
Reduced mining rewards mean lower profitability unless Bitcoin’s price increases. This often forces less efficient miners out of the network.
Impact on Price:
Historically, Bitcoin halving has been followed by significant price increases due to reduced supply and increased demand.
Next Halving Date:
Scheduled for 2024. The block reward will decrease from 6.25 BTC to 3.125 BTC.
