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Rachel Welch

25 November 2022 78 Read Bitcoin

What is Bitcoin Halving?

Whether you are new to cryptocurrencies or you are a seasoned investor, you should familiarize yourself with what a halving is and how it affects your investments. A halving is when the number of new coins in circulation decreases by a certain percentage. This decrease in supply leads to a rise in demand and increases the value of the coins.The next halving event is expected to occur around May 4, 2024. This event is expected to result in the block rewards decreasing from 6.25 BTC to 0.78125 BTC. Miners will no longer be paid for processing transactions and they will only be rewarded for adding a new block to the chain.

Miners are the second largest stakeholder in the Bitcoin network. They are compensated for processing transactions through a transaction fee. The fees are a means of ensuring that miners have an incentive to continue mining.