Bitcoins are not infinite. In fact there is a fixed number of all Bitcoins that will exist: 21 million. This number is not the total number of BTC that exist now, since this cryptocurrency continues to be “created” today thanks to cryptocurrency mining; a process in which users use the processing power of specialized equipment called ASICs to help the blockchain network by validating transactions and obtain BTC as a reward.
Because Bitcoin's scarcity is part of what gives it its value, there is a mechanism that prevents all Bitcoin from being mined quickly: halvings.
What does the Bitcoin halving mean?
A Bitcoin halving It is an event that occurs when 210,000 blocks are mined (which occurs approximately every four years) in which the rewards granted per mined block are reduced by half. From 2009 to 2012, 50 BTC were obtained per mined block, from 2012 to 2016 the first halving reduced them to 25... up to the current 3,125 BTC reached after the fourth halving.
This successive reduction in BTC obtained through mining ensures that Bitcoin will continue to be created until approximately the year 2140, which (if the price supports) would in principle ensure that users continue mining and, therefore, supporting the operation of the network.
The reason for the halving is none other than Bitcoin inflation controlmaking it increasingly scarce, since they reduce the entry of new currencies into the market. If the 21 million BTC had been released on the day of its creation, it is possible that its price would now be zero.
Bitcoin is not the only currency that has halvings. Others, such as Litecoin and BCH (Bitcoin Cash), also reduce their emissions by half periodically.
Each halving has a certain impact on the price of Bitcoin, so it is advisable to keep an eye on the market in the days surrounding this event. The next halving is estimated for 2028when the reward will go from 3.125 BTC to 1.5625 BTC per block.
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