Bitcoin halving is a programmed event that occurs approximately every four years in the Bitcoin network. It is a pre-defined adjustment of the Bitcoin mining rewards and is designed to ensure that the total supply of Bitcoin will never exceed 21 million coins.
In simple terms, Bitcoin halving is a process that reduces the number of Bitcoins that miners receive as a reward for verifying transactions and adding new blocks to the blockchain. During the first four years of Bitcoin's existence, miners received 50 Bitcoins for each block they added to the blockchain. In 2012, this reward was halved to 25 Bitcoins per block, and in 2016, it was reduced again to 12.5 Bitcoins per block.
The most recent Bitcoin halving occurred on May 11, 2020, and the block reward was reduced from 12.5 Bitcoins to 6.25 Bitcoins. This means that every ten minutes, only 6.25 Bitcoins are created and distributed to miners who successfully add a new block to the blockchain.
Bitcoin halving is important because it controls the inflation rate of the Bitcoin currency. By reducing the number of Bitcoins that are created and distributed, the Bitcoin network ensures that the value of Bitcoin is maintained and that it cannot be devalued through excessive supply.