💸 A breakdown of the concept for beginners
#Halving is a process that slows down the issuance of new units of cryptocurrency by reducing the reward to miners for verifying transactions on the blockchain. This mechanism ensures a steady rate of issuance until the maximum supply of the crypto asset is reached.
In the #Bitcoin system, halving occurs every 210,000 blocks, which roughly corresponds to four years. It halves miners' rewards and controls the creation of new bitcoins to prevent the BTC market from becoming oversaturated.
Halving plays a key role in bitcoin tokenomics, gradually reducing its #Supply and maintaining the scarcity and value of the digital asset. The total bitcoin supply is capped at 21 million, and the halving mechanism ensures a predictable pace to reach that mark.
The next bitcoin halving is scheduled for April 2024, approximately four years after the previous one in May 2020. At this point, over 90% of all bitcoins have already been created, and it is predicted that the last bitcoin will be created by 2140.
Halving doesn't change your current bitcoin supply, but it can affect the price and other aspects of the cryptocurrency sphere, so investors, traders and crypto-enthusiasts are watching this process closely.
After the 32nd halving, no more new bitcoins will be created, reaching a maximum supply of 21 million BTC.
