Halving

Halving is a crucial event in Bitcoin's protocol, occurring approximately every four years. During this event, the reward miners receive for validating transactions is cut by 50%. This process reduces the rate at which new Bitcoins are created. It ensures that the total supply is capped at 21 million. Halving is designed to control inflation and increase scarcity over time. Historically, it has had significant implications on Bitcoin's price due to reduced supply and increased demand. By influencing the scarcity of Bitcoin, halving plays a vital role in the cryptocurrency's long-term value proposition.