A special event on some blockchains, like Bitcoin, where the reward for mining a new block is cut in half.
Halving is a programmed event that reduces the block-reward given to miners by 50%. It is a core feature of Bitcoin and some other cryptocurrencies.
The Halving event is hard-coded into the Bitcoin protocol and occurs approximately every four years (or every 210,000 blocks). Its purpose is to control the supply of new bitcoins entering the market. By cutting the block-reward in half, the Halving event makes Bitcoin increasingly scarce over time.
This mechanism is a key difference between cryptocurrency and fiat-currency. Unlike fiat-currency, which can be printed in unlimited quantities by a central bank, Bitcoin's supply is predictable and deflationary. This is a core part of the "digital gold" narrative that makes Bitcoin attractive as a long-term store of value.
Historically, a Halving event has been a catalyst for a bull-bear market. The reduction in the supply of new bitcoins, combined with sustained or increased demand, often leads to a significant price rally in the year following the event. However, it can also lead to short-term challenges for miners, whose profitability is immediately cut in half. This often forces smaller, less efficient miners to shut down, leading to consolidation in the mining industry.
The Halving is a monumental event in the crypto calendar. It demonstrates the predictable, rules-based nature of the Bitcoin protocol and reinforces its scarcity. It serves as a reminder that the network operates autonomously, without human intervention, and remains a core pillar of its value proposition.
Halving is a programmed event that reduces the block-reward given to miners by 50%. It is a core feature of Bitcoin and some other cryptocurrencies.
The halving event is hard-coded into the Bitcoin protocol and occurs approximately every four years (or every 210,000 blocks). Its purpose is to control the supply of new bitcoins entering the market. By cutting the block-reward in half, the halving event makes Bitcoin increasingly scarce over time.
This mechanism is a key difference between cryptocurrency and fiat-currency. Unlike fiat-currency, which can be printed in unlimited quantities by a central bank, Bitcoin's supply is predictable and deflationary. This is a core part of the "digital gold" narrative that makes Bitcoin attractive as a long-term store of value.
Historically, a halving event has been a catalyst for a bull market. The reduction in the supply of new bitcoins, combined with sustained or increased demand, often leads to a significant price rally in the year following the event. However, it can also lead to short-term challenges for miners, whose profitability is immediately cut in half. This often forces smaller, less efficient miners to shut down, leading to consolidation in the mining industry.
The halving is a monumental event in the crypto calendar. It demonstrates the predictable, rules-based nature of the Bitcoin protocol and reinforces its scarcity. It serves as a reminder that the network operates autonomously, without human intervention, and remains a core pillar of its value proposition.
The new coins that miners earn for successfully adding a new block of transactions to the blockchain.
A hard fork is a major change to the blockchain that makes it incompatible with the old version. A soft fork is a small, backward-compatible change.
The total computing power used for mining a cryptocurrency. A higher hash rate means the network is more secure.
A node that only stores a small part of the blockchain's history and relies on full nodes for information.
