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Halving is a mechanism that allows Bitcoin to have predictable inflation. Thanks to the halving, which takes place every four years, the pace at which new Bitcoin are introduced is gradually slowed down. This rule, set by Satoshi Nakamoto, the creator of Bitcoin, ensures that Bitcoin is a deflationary entity.
Since the amount of Bitcoin produced per day will decrease from 900 BTC to 450 BTC, the selling pressure created by miners will decrease in the short term. In the medium and long term, half as few Bitcoin will be released as before. It is thought that this situation will also have a positive effect on the price.
In retrospect, the post-halving rises are striking. Bitcoin had increased by 9,000 percent in the 12 months since the first halving in 2012. In 2016, this was 375 percent, while in 2020 it was 600 percent. Bitcoin's post-halving rises led to a link between the halving and price increases. #HotTopicDiscussion#