Bitcoin Halving is one of the most important events in the cryptocurrency world. It happens approximately every four years, and it has a massive impact on the price of Bitcoin and the entire crypto market.
**What is Bitcoin Halving?**
Bitcoin is limited to 21 million coins. To control the supply, the reward that miners receive for verifying transactions is cut in half every 210,000 blocks. This process is called "Halving."
**Why Does It Happen?**
**Controlled Inflation:** Unlike traditional money, Bitcoin is designed to be "deflationary," meaning its supply decreases over time.**Scarcity:** As fewer new Bitcoins enter the market, the coin becomes rarer, which can drive up the price if demand stays high.
**Historical Impact on Price**
In the past, every Bitcoin Halving has been followed by a major "Bull Run" (a period where prices increase significantly). For example, after the halvings in 2012, 2016, and 2020, Bitcoin reached new all-time highs.
**What Should Investors Do?**
While history shows price increases, the market is always volatile. Investors should watch the market closely and understand that Halving is a long-term event, not a "get rich quick" scheme.
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