Every four years, Bitcoin experiences a pivotal moment known as “halving,” where the number of bitcoins awarded to miners for adding new transactions to the blockchain is slashed by half. This deflationary event is a core mechanism designed to mimic the extraction of a finite resource, akin to mining gold.

Starting off in 2009, miners received 50 bitcoins per block. The first halving in 2012 brought this number down to 25. Fast forward to 2016, and the reward halved again to 12.5 bitcoins. The most recent halving in 2020 saw the reward decrease to 6.25 bitcoins per block, making the minting of new bitcoins even rarer.

As we approach the next halving in 2024, miners will see their rewards for securing the network drop to just 3.125 bitcoins per block. Each halving event subtly underscores the scarcity of Bitcoin and is often surrounded by increased discussion about its potential impact on the cryptocurrency’s valuation and miner ecosystem.

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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