## Understanding the Bitcoin Halving
The Bitcoin halving is a programmed event written into Bitcoin's code that cuts the reward for mining new Bitcoins in half, roughly every four years. This means miners, the computers that validate transactions on the Bitcoin network, receive fewer Bitcoins for their work.
### Why Does Halving Matter?
The halving plays a crucial role in Bitcoin's economic model by:
* **Scarcity:** There's a finite supply of 21 million Bitcoins. Halving slows the rate new Bitcoins enter circulation, making existing ones potentially more valuable over time.
* **Inflation Control:** By reducing the new supply, halving helps combat inflation in the Bitcoin system.
* **Potential Price Impact:** Historically, Bitcoin's price has risen following halving events. This is because, in theory, demand stays the same while supply shrinks.
