The Bitcoin halving is a significant event that occurs approximately every four years, reducing the block reward for miners by half. This deflationary mechanism is designed to control the issuance of new bitcoins and mimic the scarcity and value preservation of precious metals like gold.

The timeline begins in 2010 with the original reward of 50 BTC per block. We’ve experienced several halvings since then, with the reward decreasing to 25 BTC, and then to 12.5 BTC. Currently, we are in the era of 6.25 BTC rewards per block. Future halvings will further reduce the reward to 3.125 BTC, and eventually to less than 1 BTC per block as we approach 2040.

This reduction in supply issuance theoretically increases scarcity and has historically preceded significant price increases for Bitcoin. The cap of Bitcoin’s total supply is set at 21 million coins, ensuring that the asset remains scarce and deflationary, contrasting with traditional fiat currencies susceptible to inflation.

Disclaimer: Market capitalizations and data can vary in real-time. The information provided here is intended purely for educational purposes and should not, under any circumstances, be construed as financial advice.

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