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Reducing Block Rewards Over Time
Halving is an event where the block reward for mining a cryptocurrency is cut in half, reducing the rate at which new coins are created.
Bitcoin undergoes halving every four years, decreasing the supply of new BTC. This scarcity often influences price movements and miner behavior.
Halving events are designed to control inflation and extend the lifespan of cryptocurrencies with limited supply. They also impact mining profitability and long-term market dynamics.
Understanding halving cycles is crucial for investors, as these events often lead to significant changes in the crypto market.