A halving is a scheduled event that cuts the reward paid to miners or validators by 50%. Bitcoin’s halving is the best-known example.
How It Works
Bitcoin halves its block subsidy roughly every 210,000 blocks, or about every four years. This reduces the rate at which new BTC enters circulation.
The process continues until Bitcoin’s supply approaches its fixed cap of 21 million coins. Transaction fees are expected to become a larger part of miner revenue over time.
Why It Matters In Crypto
Halvings matter because they reduce new supply. Traders often watch them closely because previous Bitcoin cycles have been shaped partly by changes in issuance and market demand.
A practical example: after a Bitcoin halving, miners receive fewer new BTC per block, which can pressure inefficient miners and change market expectations around supply.