A closer look at the upcoming halving’s potential to usher in more sustainable mining practices.
Occurring approximately every four years, Bitcoin’s upcoming halving event seems to have once again piqued the interest of investors all over the globe.
This is because the block reward for mining the cryptocurrency is set to be slashed by half, effectively diminishing the rate at which new BTC is generated and introduced into circulation. This mechanism is central to Bitcoin’s deflationary economic model, designed to cap the total supply of Bitcoin at 21 million.
Historically, halvings have had significant implications for Bitcoin’s price and the broader cryptocurrency market. The first Bitcoin halving in 2012 slashed the block reward from 50 to 25 Bitcoin, followed by subsequent halvings in 2016 and 2020, further reducing the rewards to 12.5 and 6.25 Bitcoin, respectively.
