Explainer: Does a 'halving' in bitcoin matter?

LONDON (Reuters) - With the price of bitcoin hitting all-time highs, people are focusing on its impending "halving" and if that is contributing to its rise.

Depending on your point of view, the halving is either an important development that will enhance bitcoin's worth as a scarcer good or it's just a technical quirk hyped up by traders to drive up the price.


But what is it precisely, and is it really so important?
Describe it.
The goal of the halving is to slow down the creation of new bitcoins by altering the underlying blockchain technology.
From the beginning, Satoshi Nakamoto, the anonymous creator of Bitcoin, intended for there to be a limited amount of 21 million tokens.
The halving was coded by Nakamoto and operates by slowing down the rate at which new bitcoin are created and put into use.

Approximately 19 million tokens have been distributed thus far.

 HOW Did IT TO POSSIBLE?

With blockchain technology, information is recorded in what are known as "blocks," which are then added to the chain through a procedure known as "mining."
Miners develop the blockchain through applying computing resources to intricate mathematical puzzles; they receive compensation with fresh bitcoin.
The quantity of bitcoin that is accessible to miners as rewards is halved at this point. As a result, mining becoming less lucrative and the amount of new bitcoins produced decreases.

 WHAT TIME WILL IT OCCUR?

Although a specific date has not been announced, it is anticipated to occur in late April.
Every time 210,000 blocks are added to the network, the blockchain is set up to halve. This indicates that it occurs about every four years.
WHAT HAS IT TO DO WITH THE PRICE OF BTC?
Some supporters of bitcoin contend that its rarity adds to its worth.
When consumers attempt to purchase more of a good, the price should climb the lower the quantity of that good is.