Halving
The Bitcoin Halving event is always highly anticipated, where the amount of Bitcoin that’s rewarded for mining each block is cut in half. These halving events take place roughly every 4 years and creates the bull and bear markets that we have seen with Bitcoin’s price since inception.
Bitcoin mining is done by specialised equipment called ASICs and this process secures batches or blocks of Bitcoin transactions on the blockchain. Miners are rewarded for processing these transactions with Bitcoin, which gets deposited to their wallets.
Every 210,000 blocks, the amount that’s rewarded to Bitcoin miners is cut in half as defined by the protocol. This works as follows:
- 50 Bitcoins were rewarded for every block for the first 210,000 blocks,
- 25 Bitcoins for the next 210,000
- 12.5 Bitcoins for the next 210,000
- And so on
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