In the world of Bitcoin, there's a concept known as "Bitcoin halving." Approximately every four years, the reward for mining a block of transactions is halved. This event is significant because it reduces the rate at which new bitcoins are created, making the asset more scarce over time. The halving is built into Bitcoin's code to mimic the rate at which commodities like gold become harder to mine. This mechanism is crucial for Bitcoin's value proposition as a deflationary currency, contrasting with inflationary traditional currencies where central banks can print more money. The halving events are highly anticipated within the crypto community as they have historically been associated with increases in Bitcoin's price, reflecting the changing supply dynamics.
