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Halving
Rick Alexsson avatar
Written by Rick Alexsson
Updated over 4 years ago

In the world of cryptocurrencies, halving means decreasing the mining reward by half.

When confirming transactions on a blockchain, miners get rewards in the form of cryptocurrency. Given that the supply of cryptocurrencies like Bitcoin is limited, halving helps to support the circulation of coins in the network for a long time.

Halving was programmed into the Bitcoin network and occurs every 210,000 blocks or approximately every four years. Once that number of blocks is reached, the block reward is cut in half.

What are the possible effects of a Bitcoin halving?

  • For a trader, halving can bring BTC price changes.

  • For a miner, halving means a 50% lower mining reward.

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