The long-awaited Bitcoin Halving event, where the amount of Bitcoin that is rewarded for mining each block is halved. These halving events occur approximately every 4 years and create the bull and bear markets we have seen with the price of Bitcoin since its inception.
Bitcoin mining is done by specialized 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 is deposited in their wallet.
Every 210,000 blocks, the amount that is rewarded for Bitcoin miners is halved as defined by the protocol. It works as follows:
- 50 Bitcoins were rewarded for each block for the first 210,000 blocks,
- 25 Bitcoins for the next 210,000
- 12.5 Bitcoins for the next 210,000