WHAT IS HALVING ?

Bitcoin halving is an event dictated by a rule within the Bitcoin protocol. Bitcoin mining is the process where computers solve mathematical problems to generate new Bitcoins. However, the Bitcoin protocol is designed to reduce the rewards given to miners by half every 210,000 blocks.
The maximum supply of Bitcoin, as determined by its creator Satoshi Nakamoto, is set at 21 million. As Bitcoins are mined over time, this process occurs in a controlled manner. Every 210,000 blocks, approximately every 4 years, the reward per block that Bitcoin miners receive is halved. This phenomenon is referred to as "halving."
The primary purpose of Bitcoin halving is to ensure that the total supply of Bitcoin increases in a limited and controlled manner, ultimately reaching the maximum of 21 million Bitcoins. This design decision aims to preserve the value of Bitcoin and enhance its potential for appreciation over time. Each halving event comes with a reduction in the reward given to miners per block. The initial reward of 50 Bitcoins is halved to 25 after the first halving, then to 12.5 after the second halving, and further reduced to 6.25 after the third halving.
Bitcoin halving events often lead to significant price fluctuations in the Bitcoin market. Some investors and analysts closely monitor these periods, anticipating that halving may contribute to a rise in Bitcoin prices. However, precise outcomes are unpredictable as market conditions, demand and supply factors, and various dynamics determine post-halving Bitcoin prices.