Definition
Halving is an event in certain cryptocurrencies, most notably Bitcoin, where the reward miners receive for validating transactions is reduced by 50%. Bitcoin halving occurs approximately every four years or every 210,000 blocks. The event is built into Bitcoin’s protocol to control the rate at which new coins enter circulation. By reducing supply growth over time, halving helps maintain Bitcoin’s scarcity and contributes to its fixed maximum supply of 21 million coins. Historically, halvings have attracted attention because they can influence mining economics, network participation, and market sentiment.
Simple Explanation
Halving is when Bitcoin mining rewards are cut in half to slow the creation of new bitcoins.
Example
A miner earning 6.25 BTC per block before a halving earns 3.125 BTC per block after the event.
Why It Matters
Halving reduces new Bitcoin supply and plays a key role in maintaining scarcity.