The Bitcoin halving cycle is a recurring event that happens approximately every four years within the Bitcoin blockchain.
It is a process that involves reducing the block reward that miners receive for mining a new block in the Bitcoin blockchain.
The #bitcoin protocol has a fixed supply of 21 million coins, and the halving cycle helps to ensure that this limit is maintained.
The first halving event took place in 2012, and since then, there have been two other halvings in 2016 and 2020, respectively.
Following each halving event, the #block reward is cut by half, meaning that miners receive fewer bitcoins for every block they mine. For example, the block reward for the first four years of Bitcoin's existence was 50 bitcoins per block.
Still, after the first #halving , it was reduced to 25 bitcoins per block, and after the second halving, it was reduced again to 12.5 bitcoins per block. After the third halving in 2020, the reward became 6.25 bitcoins per block.
The halving cycle is a critical component of the Bitcoin protocol as it helps to control the supply of new bitcoins entering the market. By reducing the rate at which new bitcoins are created, the halving cycle creates a sense of scarcity, which can potentially increase demand and drive up the value of Bitcoin.
