What is bitcoin halving?
Bitcoin halving is an event where the block reward for mining new bitcoin is halved, meaning that bitcoin traders will receive 50% less bitcoin for every transaction they verify. BTC halving occurs every 210,000 blocks, which equates to a halving occurring approximately every 4 years.
Although this can sound confusing with concepts such as ‘block reward’ and ‘verifying transactions’, bitcoin halving is a relatively simple process.
When a block of bitcoin is successfully mined, the bitcoin miner receives a block reward – essentially a BTC payment. However, the bitcoin halving process follows cryptocurrency economic theory. As bitcoin has a finite amount and its supply is reduced over time, the price of bitcoin can be kept ‘stable’ and deflationary by reducing the overall supply – this is why bitcoin halving exists.