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Bitcoin halving represents a fundamental economic mechanism within the Bitcoin protocol, creating a predictable supply reduction event that occurs approximately every four years. During each halving event, miners' rewards for validating blocks are reduced by 50%, directly impacting the rate at which new Bitcoins enter circulation.
This programmatic supply reduction is the cornerstone of Bitcoin's monetary policy and deflationary model. By analyzing historical halving charts and previous market responses, we can gain valuable insights into Bitcoin's unique supply cycle dynamics.
01 Understanding the Bitcoin Halving Mechanism
Bitcoin halving is a preset economic rule in which the new coin rewards miners receive are automatically reduced by 50% after every 210,000 blocks produced in the Bitcoin network, aiming to maintain a fixed total supply through code-controlled issuance.
This mechanism was designed by Satoshi Nakamoto and embedded into the underlying protocol, with an initial block reward of 50 BTC.
The core principle of halving is based on Bitcoin