Halving

Halving is an event in Bitcoin’s protocol that occurs approximately every four years, reducing the reward miners receive for adding new blocks to the blockchain by half. This process controls Bitcoin’s supply, ensuring new coins are introduced gradually. For example, if miners earned 12.5 Bitcoins for a block, after a halving, the reward drops to 6.25. Halving helps maintain scarcity, influences Bitcoin's price by altering supply rate, and continues until the maximum supply of 21 million Bitcoins is reached, making it a key feature in Bitcoin’s economic model.