What is a Crypto Halving?

Halving or halvening is a process or event through which the total rewards received by miners for each confirmed block halves. In essence, it is a deflationary occurrence on a blockchain network.

Halving is an important event because it affects the rate of supply by reducing the quantity of additional coins put in circulation and increasing the scarcity of a coin or token. The halving is not a random occurrence, it is programmed in the blockchain code.

Bitcoin code is programmed so that approximately every four years, a halving will occur. Initially, the Bitcoin reward per mined block was 50 BTC. The block reward was reduced to 25 BTC when the first halving was performed. After the second halving, the reward was 12.5 BTC; after the 2020 halving, the reward is 6.25 BTC. The next halving should occur in March 2024, after which the reward will be 3.125 BTC for each mined block.