What is Bitcoin Halving?

[Jamesparker]

Think of bitcoin mining as a treasure hunt. Miners use powerful computers to solve complex puzzles, and the winner receives a set amount of Bitcoin. To ensure that transactions on the network extract this prize cut in half during the halfway process.
 

Why the halving?

Satoshi Nakamoto, the creator of Bitcoin, put scarcity at the core of the system. There is a limit of 21 million bitcoins to be mined a day. The delays, which are scheduled to last for more than half and four years, slow the release of new bitcoin. Think of it as slowly reducing the number of new treasure chests hidden in the game.
 

How does halving it affect the market?

The basic principle of economics applies: scarcity can cause inflation. By reducing the supply of new bitcoins, the halving creates a possible scenario where demand remains flat or even increases, pushing the price of each bitcoin higher. However, it is important to remember that the cryptocurrency market is complicated, and other factors can affect price fluctuations.