What is a Bitcoin Halving? Bitcoin halving refers to a pivotal event that occurs approximately every four years, reducing the block reward by 50%. This decreases the number of bitcoins entering the market, thereby increasing scarcity, which, under consistent market conditions, can drive up its value.
Block rewards are a part of the blockchain’s automated transaction validation and new block creation process, known as mining. Miners—participants in a race to solve complex cryptographic puzzles—are awarded new bitcoins if they are the first to solve the puzzle.