Before diving into the impact of halving events, it’s important to understand what they are and how they work
In the case of Bitcoin, for example, the network releases new Bitcoins into circulation through a process called mining
Powerful computers are used by miners to solve challenging mathematical puzzles and verify network transactions
In exchange for their efforts, they receive a reward in the form of newly created Bitcoins
Halving events occur when the reward for mining new Bitcoins is reduced by half
This happens approximately every four years, and it is a critical feature of the Bitcoin protocol
The purpose of halving events is to limit the supply of new Bitcoins, thereby ensuring that the cryptocurrency remains scarce and valuable
So, how do halving events impact cryptocurrency values? One of the most significant impacts is on the supply of the cryptocurrency