What is the Bitcoin halving?
The Bitcoin halving is a recurring event that occurs every four years and reduces the rate at which new Bitcoin are created and introduced into the market by 50%. It is an essential part of Bitcoin's built-in monetary policy, designed to control inflation.
Why does the halving happen?
The concept of halving Bitcoin at its core stems from its deflationary nature. It is designed to mimic the mining of gold from the earth: the more that is extracted, the harder it becomes to find and mine. As a result, the Bitcoin halving decreases the rate at which new Bitcoin are created, slowing down the overall 'production' rate. This event is significant because it not only reduces the supply of new coins entering the market, but it also has the potential to drive up the value of Bitcoin if demand remains steady or increases.
What is the impact of the halving?
The halving can have a significant impact on the price of Bitcoin. Historically, halvings have been followed by bull markets. This is because the decreased supply of new Bitcoin created each year makes Bitcoin more scarce, increasing its value.
The next Bitcoin halving is expected to occur in april 2024.
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