What Is #Bitcoin_Halving
After the network mines 210,000 blocks —roughly every four years—the block reward given to Bitcoin miners for processing transactions is cut in half. This event is called #halving because it cuts the rate at which new bitcoins are $$released into circulation in half.
This rewards system will continue until about #2140 when the proposed limit of 21 million coins is reached. At that point, miners will be rewarded with fees for processing transactions, which network users will pay. These fees ensure miners are still incentivized to participate and keep the network going.
The halving event is significant because it marks another drop in the rate of new #Bitcoins produced as it approaches its finite supply. In #2009, the reward for each block in the chain mined was 50 bitcoins As of October 2023, about 19.5 million bitcoins were in circulation, leaving just around 1.5 million to be released via mining rewards.