Halving relates to Bitcoin, and it describes an event where Bitcoin mining rewards are reduced by 50%.

A Bitcoin Halving occurs every 210,000 blocks. which usually takes around four years.

The Bitcoin supply is limited to 21 million coins. There will never be any more.

New bitcoins are created and released through bitcoin mining, which rewards miners with new bitcoin (BTC) for securing the Bitcoin network.

When a Bitcoin miner confirms a block, new bitcoins (BTC) are released into circulation. which are used to pay the miner for its effort, known as a block reward.

Once transactions are validated, these transactions are added to a block, and that new block is added to the blockchain.

This process maintains and secures the Bitcoin ledger.

For their part, miners receive rewards, currently in the amount of 6.25 BTC.

The halving reduces the rate at which new bitcoin is created, specifically reducing these block rewards, and in effect, reducing the incentive for miners to continue their work of securing the network.

Lower rewards mean lower incentives, which results in fewer miners and lower network security.

The next halving, determined to occur sometime in 2024, reduces the block reward from 6.25 BTC to 3.125 BTC.

There will be a total of 32 halving events, which is a limit hardcoded into Bitcoin’s core code.

Halvings play their part in controlling Bitcoin’s rate of monetary inflation.

The halving policy counteracts inflation by maintaining Bitcoin’s scarcity.

If demand for Bitcoin stays the same, the slow pace of Bitcoin issuance should result in bitcoin’s price increasing.