21 Nov 2024
Bitcoin halving is an important event in cryptocurrency. It happens roughly every four years and affects how new Bitcoins are made. During halving, the rate at which new Bitcoins are created gets cut in half.
This means miners, the people who verify transactions and add them to the blockchain, receive fewer rewards for their efforts. To understand why this happens, imagine Bitcoin as a big theater performance. When halving occurs, it's like the show taking a break and slowing down. The actors (miners) still do their jobs, but they don't get as many rewards (Bitcoins) for their work. This slowdown is necessary to keep things in balance. It helps prevent inflation by controlling how many new Bitcoins enter circulation. Ultimately, the goal is to maintain the total number of Bitcoins at 21 million, ensuring the currency's value remains stable.
