One of the most pivotal events on Bitcoin's blockchain is a halving, when the reward for mining is cut in half. Since 2020, the network participants validating transactions have been awarded 6.25 bitcoins (BTC) for each block successfully mined.
The next halving is expected to occur in early-to-mid 2024, when the block reward will fall to 3.125. Over time, the impact of each halving will diminish as the block reward approaches one satoshi.
The halving event is significant because it marks another drop in the rate of new Bitcoins produced as it approaches its finite supply. In 2009, the reward for each block in the chain mined was 50 bitcoins. As of October 2023, about 19.5 million bitcoins were in circulation, leaving just around 1.5 million to be released via mining rewards.
What Happens When Bitcoin Halves?
The term "halving" as it relates to Bitcoin concerns how many tokens are rewarded. This acts as a way to simulate diminishing returns, theoretically intended to raise demand.
‼️BITCOIN will be much more valuable after halving!‼️
