The primary purpose of halving is to control the supply of Bitcoin and introduce scarcity into its economy. Unlike traditional fiat currencies that can be printed indefinitely, Bitcoin’s limited supply of 21 million coins means that as more people adopt it, the available supply dwindles, potentially putting upward pressure on its value. This programmed reduction in the rate at which new Bitcoin is produced is necessary to mitigate inflation, setting Bitcoin apart from traditional currencies, which can experience inflation due to excessive money printing. Halving events have historically been catalysts for large price movements, leading to periods of increased speculation and investment in the lead-up to and after the events. For example, the halving in 2016 was followed by a massive surge in the price of Bitcoin, reaching its all-time high in late 2017. Similarly, the halving in 2020 brought renewed interest and investment, leading to another surge in price.