🧲 CRYPTO HALVING
👉 Crypto halving, or halving, refers to a programmed reduction in the reward that miners receive for validating and adding new blocks to a blockchain. This event occurs at regular intervals and is a fundamental aspect of the design of certain cryptocurrencies, most notably Bitcoin. The term "halving" is derived from the fact that the rewards are halved.
In the context of Bitcoin : Bitcoin halving occurs approximately every four years (or every 210,000 blocks). The reward that miners receive for successfully mining a new block is halved. The purpose of halving is to control the supply of new bitcoins entering circulation and create scarcity, much like precious metals.
For example Initial Reward (2009) : 50 bitcoins per block.
First Halving (2012) : Reward reduced to 25 bitcoins per block.
Second Halving (2016) : Reward further reduced to 12.5 bitcoins per block.
Third Halving (2020) : Reward reduced to 6.25 bitcoins per block.
The next halving events will continue to reduce the reward until the maximum supply of 21 million bitcoins is reached.
Halving events can have significant effects on the cryptocurrency ecosystem, influencing factors like miner profitability, market sentiment, and ultimately impacting the supply and demand dynamics of the cryptocurrency.
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