Bitcoin halving is a pivotal event in the cryptocurrency world, occurring approximately every four years. During a halving, the reward for mining new blocks is cut in half, reducing the rate at which new bitcoins are created. This mechanism is built into Bitcoin's protocol to ensure its scarcity and control inflation. With each halving, the supply of new bitcoins entering circulation slows down, ultimately leading to a capped supply of 21 million bitcoins. This scarcity is a fundamental aspect of Bitcoin's value proposition, often leading to increased demand and upward price pressure. Historically, Bitcoin halvings have been associated with significant price rallies, as the reduced supply meets increasing demand, driving up prices. As a result, Bitcoin halvings are closely monitored by investors, traders, and enthusiasts alike, as they represent key milestones in the evolution of the Bitcoin network and its economic dynamics.
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