Halving is one of the most important events in the Bitcoin world. Every 4 years, the Bitcoin mining reward is cut in half — reducing the inflow of new Bitcoins. Historically, each halving has preceded a major bull run.
How It Works
Bitcoin miners receive a reward for each block they confirm. Initially 50 BTC per block. First halving (2012): 25 BTC. Second (2016): 12.5 BTC. Third (2020): 6.25 BTC. Fourth (2024): 3.125 BTC. The last Bitcoin will be mined around 2140.
Why It Matters
Basic economics: reduced supply with same or higher demand = price increase. Each halving reduces new supply, creating upward pressure if demand holds.
Disclaimer: This is not financial advice. Always do your own research.