What is crypto halving?

What Is Crypto Halving?

A halving (or "halvening") is when the reward for mining (or validating) new blocks is cut in half. Bitcoin does this roughly every four years. When Bitcoin launched, miners got 50 BTC per block; after several halvings, the reward is now 3.125 BTC. This slows the rate at which new Bitcoin enters the market until the cap of 21 million is reached.

Why It Exists

Halving is built into Bitcoin's code to create predictable, decreasing inflation. It makes Bitcoin scarcer over time. Historically, halvings have been followed by bull markets, but past performance does not guarantee future results. Miner revenue drops at each halving unless price or fees rise enough to compensate.

For Investors

Understand that supply growth slows at each halving. Do not invest solely because of a halving; consider the whole market and your risk. In India, any gains from selling Bitcoin are taxable regardless of halving timing.