Summary
TLDR: The Bitcoin halving event occurs every four years, reducing mining rewards by half. This is to limit the supply of Bitcoin and ensure its scarcity. The halving process will continue until 2140, when all 21 million Bitcoins will be mined. The halving impacts miners, transaction fees, and potentially the price of Bitcoin. Some believe the halving affects Bitcoin’s price, while others argue it is already “priced in”. The 2024 halving is expected to be different due to factors like Bitcoin ETF approval and potential price corrections.
Key Points
1. The Bitcoin halving is an event where mining rewards are cut in half every four years, according to pre-set rules in Bitcoin’s code.
2. The total supply of Bitcoin is capped at 21 million coins, making it a scarce digital product with a limited availability similar to precious metals like gold.
3. The halving event affects Bitcoin miners by reducing their rewards, potentially leading to fewer miners and less security for the network in the long run.