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What is the purpose of a Bitcoin halving?

Halving is a process designed to control the supply of Bitcoins. It slows the production rate of new Bitcoins and bolsters the cryptocurrency’s value. As the name suggests, halving cuts the production of new Bitcoins by 50%. The key to halving is managing incentives for the creation of new tokens.

How does a Bitcoin halving affect the price of Bitcoin?

The halving reduces the rate at which new coins are created and lower the current available supply. This can lead to some consequences for the investors as other assets with low supply, like gold, can have high demand and push prices higher. Previously bitcoins halving have resulted in big raises in the bitcoin price.

When is the next bitcoin halving?

As of 2022, Bitcoin miners, or people who use their computers to participate in Bitcoin's blockchain network as a transaction processor and validator, are awarded 6.25 bitcoins (BTC) for each block they successfully mine. The next halving will occur in 2024, when the block reward will fall to 3.125.

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