Bitcoin halving is a critical mechanism that slows down the issuance of new cryptocurrency units by reducing the mining rewards for verifying transactions on the blockchain. This process ensures a steady release rate until the crypto asset reaches its maximum supply cap.
In the Bitcoin system, a halving event occurs every 210,000 blocks, roughly every four years. It cuts the miners’ reward in half and controls the creation of new Bitcoins to prevent market oversaturation with BTC.
Halving plays a pivotal role in Bitcoin’s tokenomics, gradually decreasing its supply to maintain scarcity and value of the digital asset. Bitcoin’s total supply is capped at 21 million, and the halving mechanism provides a predictable pace for reaching this limit.
The next Bitcoin halving is scheduled for April 2024, approximately four years after the previous event in May 2020. To date, over 90% of all Bitcoins have been mined, with the last Bitcoin expected to be created by the year 2140.
While halving does not change your current Bitcoin holdings, it can influence the price and other aspects of the cryptocurrency sphere, making it a significant event for investors, traders, and crypto enthusiasts.
After the 32nd halving, no new Bitcoins will be created, reaching the maximum supply of 21 million BTC.