Bitcoin halving is a significant event that occurs roughly every four years in the Bitcoin network.

It is a change in Bitcoin’s underlying blockchain technology designed to reduce the rate at which new bitcoins are created.

Blockchain technology involves creating records called “blocks” that are added to the chain through a process called “mining.”

Miners use computing power to solve complex mathematical puzzles and earn rewards in the form of new bitcoins.

Every 210,000 blocks added to the chain (approximately every four years), a halving occurs.

Why Does It Matter?

 Scarcity: Bitcoin’s scarcity gives it value. With only 21 million bitcoins ever to be mined, halving contributes to making bitcoins more scarce.

Price Impact: Some argue that reduced supply should lead to higher prices, but this impact may already be factored into the price.

Miner Behavior: Miners play a crucial role in Bitcoin’s supply. If they sell their reserves, it could pressure prices lower.

 Market Complexity: Determining the exact impact of halving on Bitcoin’s price is challenging due to the crypto market’s opacity