Bitcoin Halving: How It Affects Crypto Prices?

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Bitcoin, the world's largest cryptocurrency, on Friday completed its 'halving'--a phenomenon that happens roughly every four years

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The 2024 Bitcoin halving is the 4th of its kind, lowering the mining reward to 3.125 bitcoins per block

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Notably, Bitcoin's halving is a change in Bitcoin's underlying blockchain technology designed to reduce the rate at which new Bitcoins are created

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A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half, meaning miners receive 50% fewer bitcoins for verifying transactions

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Why does this happen? Bitcoin's creator, known as Satoshi Nakamoto, designed the process as a way to limit the total supply of Bitcoin, increasing its scarcity

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Because there are only 21 million bitcoins and the halving makes fewer of them, the halving contributes to making bitcoins more scarce

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Scarcity is one of the reasons why Bitcoin is sought after by millions of people. This scarcity measure limits supply and can push the BTC price up

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While the halving itself doesn't directly impact bitcoin's price, investors' anticipation of the event can lead to highly erratic price movements

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Halving is also essential to prolong the mining process and distribute the creation of new Bitcoins more evenly over time

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Bitcoin halvings will occur every 210,000 blocks until around 2140, when all 21 million coins will have been mined

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