#Halving Bitcoin halving is a mechanism specified by the Bitcoin network protocol that occurs approximately every four years. Its main purpose is to control the speed and quantity of new Bitcoins being issued, thereby maintaining their scarcity and value. Each halving reduces the amount of Bitcoin rewards miners receive for mining new blocks in half.
The importance of this process is that it combats inflation and ensures Bitcoin’s status as a form of digital gold. By reducing the rate at which supply grows, halving events help support or push up Bitcoin prices, attracting more investors and users. At the same time, the halving has also led to an increase in mining costs, causing small-scale or inefficient miners to exit the market, enhancing the security and decentralization of the network. In addition, in the long run, halving also extends the time for Bitcoin to reach the upper limit of 21 million, ensuring its long-term scarcity.