Bitcoin halving is an event that occurs approximately every four years, where the amount of Bitcoin awarded to miners is reduced by half.

This reduction in the reward for mining new blocks on the blockchain decreases the number of new Bitcoins entering circulation.

The purpose of the Bitcoin halving:

1. *Control Supply, Increase Scarcity* .—The block reward for miners is cut in half roughly every four years, limiting the number of new Bitcoins entering circulation.

2. *Potentially Drive Price Up* — With a limited supply and constant or rising demand, the price of Bitcoin could increase due to scarcity.

3. *Combat Inflation* –By slowing down new coin creation, halvings aim to minimize inflation within the Bitcoin system.

4. *Hard Limit on Total Coins* — There's a finite number of Bitcoins (21 million) that will ever be mined. Halvings help us reach that limit.

5. *Milestone for Bitcoin* —Each halving is a significant event in Bitcoin's history, making it progressively harder to mine new coins and boosting the value of existing ones.

*History of bitcoin halving*

1st halving (November 2012)— The mining reward was reduced from 50 to 25 bitcoins per block.

2nd halving (July 2016)— The mining reward was reduced from 25 to 12.5 bitcoins per block.

3rd halving (May 2020) — The mining reward was reduced from 12.5 to 6.25 bitcoins per block.

4th halving—expected–(April 2024) —The mining reward will reduce from 6.25 to 3.125 bitcoins per block.

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