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Glossary Term

Bitcoin Halving

Bitcoin Halving is a pre-programmed event in the Bitcoin blockchain protocol that reduces the block reward for miners by 50%, thereby slowing the creation of new bitcoins and controlling inflation. This event occurs approximately every four years and has significant economic and market implications for both Bitcoin and the broader crypto ecosystem.

Beginner
General
Crypto Terminology

Bitcoin Halving: what is it?

Examples

  • 1

    In 2012, the reward dropped from 50 BTC to 25 BTC.

  • 2

    In 2016, the reward dropped from 25 BTC to 12.5 BTC.

  • 3

    In 2020, the reward became 6.25 BTC, and the next halving will further reduce it.

Common Use Cases

Used as a reference by analysts and traders to anticipate market cycles.
Guides long-term holders (hodlers) and institutional investors in understanding bitcoin’s supply model.
Serves as a framework for other blockchains, some of which implement their own emissions reductions or “halving”-like events.

Pro Tips

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Watch for increased volatility during halving periods due to speculation and media coverage.

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Halvings are predictable; align your trading or portfolio updates in anticipation of these supply shifts.

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The effects of halvings are not immediate—market reactions can be delayed.

Frequently Asked Questions

Related Terms

Altcoin
Non-Fungible Token (NFT)
Benchmark
Utility Token
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