Bitcoin halving
The Bitcoin network relies on a process called mining in which people use very powerful computers to validate transactions. Since mining is both important (it keeps the network running) and expensive (requiring a ton of computing power), mi
By Geoffrey Lyons
Published on Aug 2, 2024
Last modified on Aug 22, 2024
The Bitcoin network relies on a process called mining in which people use very powerful computers to validate transactions. Since mining is both important (it keeps the network running) and expensive (requiring a ton of computing power), miners are rewarded for their efforts with newly-minted BTC. This is called a block reward or block subsidy. Besides making Bitcoin miners very happy, block rewards serve to increase the total supply of Bitcoin.
So what is a Bitcoin halving? A Bitcoin halving is a regular event, occurring roughly every four years, in which . This reduces the rate at which new BTC enters circulation, since miners are less incentivized to mine new BTC.
