Q&A: What will the Bitcoin halving mean for Bitcoin L2s?

Bitcoin was developed to emulate the scarcity and finite nature of resources like gold, thereby ensuring a limited supply. Satoshi Nakamoto, the founder of Bitcoin, intended that the maximum currency supply would be capped at 21 million coins.

Every four years, the network cuts the reward for mining bitcoin transactions by 50% via a process known as the halving. This is meant to slow down the influx of new coins and preserve the currency’s scarcity over time. It also ensures that Bitcoin‘s total finite supply approaches the 21 million cap gradually and predictably.

Following the halving next month, the block reward will be reduced to 3.125 bitcoin (BTC).

Given that the Bitcoin…

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