What is a Bitcoin Halving?

A Bitcoin Halving is a programmed event in Bitcoin's code that occurs approximately every four years, or more precisely, every 210,000 blocks mined. During a halving, the reward that Bitcoin miners receive for validating transactions and adding a new block to the blockchain is cut in half. This mechanism is designed to control the supply of new bitcoins entering circulation, making Bitcoin a deflationary currency over time, with a maximum supply capped at 21 million coins. The reduction in the rate of new Bitcoin creation can have significant implications for its supply-demand dynamics and market price.