What is the Bitcoin halving?
The Bitcoin halving, also known as 'halvening', is an important event that occurs once every 210,000 Bitcoin blocks, which equates to approximately once every four years. Approximately every 10 minutes, a new block is mined on the Bitcoin blockchain. Currently, miners receive a 'block reward' of 6.25 BTC for this. During each halving, this reward is halved. After the next halving, miners will receive 3.125 BTC for each block found.
The upcoming Bitcoin halving is the fourth halving in the history of Bitcoin. Previous halvings occurred on:
May 11, 2020 (block: 630,000) July 9, 2016 (block: 420,000) November 28, 2012 (block: 210,000) The 'block reward,' the number of bitcoins miners receive for a mined block, has decreased from 50 BTC per block to 25 BTC per block, then to 12.5 BTC, and is currently 6.25 BTC. This number will halve again during the upcoming halving, scheduled for March 2024, reducing it to 3.125 BTC per block. Each halving reduces the supply of new Bitcoin entering the market, which can have a positive impact on the Bitcoin price.