Up until all 21 million bitcoin have been digitally mined, the number of bitcoins awarded to miners is always cut in half every four years. Bitcoin is a limited, inflation-resistant resource thanks partly to the halving mechanism.
The halving increases the likelihood that Bitcoin’s value will increase by gradually issuing fewer bitcoin over time (assuming consistent levels of demand). Contrast this with fiat currencies, which often lose value over time due to inflation. The halving is one of the ways the Bitcoin protocol maintains scarcity, which is one of the factors in the millions of people’s desire for Bitcoin.
The much-hyped “Bitcoin halving” event has been occurring roughly every four years, with the first one taking place in 2012. The virtual currency’s programming requires that its total supply remain constant. Given that Bitcoin price halvings have historically resulted in significant price changes, investors must be aware of them. The following halving is anticipated in 2024.
