Bitcoin has come a long way since its launch in 2009. As the oldest cryptocurrency, it initiated the entire crypto movement that we see today. Decentralisation, digital ledgers, and peer-to-peer currency powered by Bitcoin blockchain technology have transformed the global industries. Since then, thousands of altcoins have emerged, each adding new features or trying to solve different problems. But Bitcoin (BTC) remains the most widely recognised and valuable crypto asset, often called the ‘digital gold.’
With a maximum supply of 21 million coins and over 19.8 million BTC already mined, Bitcoin focuses on a deflationary economic model and scarcity. One event closely tied to this limited supply is the Bitcoin halving cycle. In this post, we’ll discuss what Bitcoin halving is, its impact, and the details of the past events. We’ll also see when the next BTC halving will occur.
The Bitcoin halving cycle is a built-in feature of the blockchain network. When crypto miners validate transactions, they solve complex cryptographic puzzles as part of Bitcoin’s proof-of-work (PoW) mechanism. Each time they succeed, they earn a block reward – the newly minted bitcoins. This reward started at 50 BTC but is reduced by half after every four years.
