Bitcoin halving is an event that occurs every four years, reducing the block reward by 50%. This lowers the supply of bitcoins entering the market, increasing scarcity and potentially raising its price if market conditions remain the same. Bitcoin halvings are part of the blockchain’s automatic process of validating transactions and opening new blocks (mining). The last halving occurred on April 19, 2024, resulting in a block reward of 3.125 BTC. The final halving is expected to occur in 2140, when the number of bitcoins circulating will reach its maximum supply of 21 million.

Bitcoin halvings are considered good for several reasons, including addressing inflation concerns, increasing demand, attracting investors, and reducing mining rewards. However, they also place Bitcoin investing into the realm of speculation due to investors hoping for gains. Miners, who focus on mining for profitability, face lower chances of receiving smaller rewards if prices remain the same or drop. Consumers and retail Bitcoin users might be affected by a halving in the value of their Bitcoin holding.

The next Bitcoin halving is expected to occur in 2028, with the block reward falling to 1.625 BTC. The first Bitcoin block reward was 50 bitcoin. There have been four halvings since 2009, with the last one occurring in May 2024.

Investing in Bitcoin during a halving depends on market conditions, outlook, and risk tolerance level. For example, the latest halving saw Spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission only a few months before the event, leading to significant outflows and a soaring price. As a result, the only thing anyone can do is make a wild guess as to what the market will do.