Bitcoin 'Halving' Approaches, Reducing Mining Rewards and Supply Inflation

The Bitcoin "halving" cuts the reward for mining new blocks in half every 4 years, reducing supply inflation. The next halving is around April 19th.

Historically, halvings have preceded large Bitcoin price increases as reduced supply met steady demand. Prices rose 8,760% after the first halving in 2012.

Halvings slow the rate new Bitcoins enter circulation. Only 21 million will ever exist, per Bitcoin's coding. This scarcity makes Bitcoin attractive to investors.

Bitcoin's price has already hit an all-time high in 2024, behaving differently than during past halvings. Some expect prices to drop temporarily post-halving before rising again long-term.

After halvings, less profitable Bitcoin miners go offline, leaving only larger miners who can afford expensive, specialized computing equipment. Industry consolidation is expected around April.