*BITCOIN HALVING EXPLANATION*
Bitcoin halving is an event that occurs approximately every four years in the Bitcoin network. It is programmed into the Bitcoin protocol and refers to the reduction in the reward that Bitcoin miners receive for validating transactions and adding them to the blockchain.
During a Bitcoin halving, the number of new Bitcoins created with each block mined is halved, cutting the rate of new supply in half. This process is built into the Bitcoin protocol to control inflation and ensure that the total supply of Bitcoin remains finite, with a maximum of 21 million Bitcoins.
The first Bitcoin halving occurred in 2012, reducing the block reward from 50 BTC to 25 BTC. The second halving occurred in 2016, reducing the reward to 12.5 BTC per block. Subsequent halvings continue to decrease the reward, the third halving occurred in 2020 reducing the reward to 6.25 and with the most recent halving in 2024 reducing the reward to 3.125 BTC per block.
Bitcoin halving events often generate significant attention and speculation in the cryptocurrency community, as they can impact the supply and demand dynamics of Bitcoin, potentially affecting its price and market dynamics.
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