H A L V I N G
Bitcoin halving is an event in which the supply of Bitcoin is reduced and miners' rewards are halved. According to Bitcoin's protocol, halving occurs every 210,000 blocks. This happens approximately every four years. Halving reflects the fact that the total supply of Bitcoin is limited to 21 million.
Halving halves the rate at which miners produce new Bitcoins. This leads to Bitcoin's supply slowly decreasing and eventually mining rewards ending completely once 21 million Bitcoins are reached. This makes Bitcoin a deflationary asset because its supply is finite and decreases over time.
Bitcoin halving affects Bitcoin's price and mining profitability. Halving causes miners to receive less reward and therefore produce less Bitcoin. This could increase the price of Bitcoin as its supply decreases while demand remains the same or increases. This could cause the value of Bitcoin to increase and mining profitability to increase. It reduces the supply of Bitcoin and could affect its price. This makes Bitcoin a deflationary asset and could increase its price. Halving affects Bitcoin's economic model and mining profitability and can determine Bitcoin's future value.
