What Is a Halving and Why Does It Matter?

A halving is one of the most important and anticipated events in many cryptocurrencies — especially Bitcoin. It refers to the moment when the block reward given to miners is cut in half. This directly affects how new coins are created and plays a big role in a cryptocurrency’s long-term supply and price dynamics.

In this article, you'll learn what a halving is, how it works, and why it matters for both users and the overall market.

What exactly happens during a halving?

In networks like Bitcoin, miners receive a reward for validating and adding new blocks to the blockchain. During a halving, this block reward is reduced by 50%. This means miners earn fewer coins for the same work — which slows down the rate at which new coins are introduced into circulation.

Example from Bitcoin:

2009: 50 BTC per block
2012: 25 BTC
2016: 12.5 BTC
2020: 6.25 BTC
Next halving (expected 2024): 3.125 BTC

Why do halvings happen?

Halvings are built into the code of many cryptocurrencies as a way to control inflation and create scarcity over time. Just like gold becomes harder to mine as resources are depleted, Bitcoin becomes harder to "create" with each halving.

This process ensures that the total supply of Bitcoin will never exceed 21 million coins — making it a deflationary asset by design.

Why is the halving important?

Lower inflation: Fewer new coins are created after each halving, which limits supply.
Market impact: Historically, halvings have often been followed by major price increases due to increased scarcity.
Mining economics: Miners must stay efficient as their rewards drop — affecting which miners stay profitable.

For investors and crypto users, understanding halvings is key to understanding market cycles, token scarcity, and long-term value development.

Does Floin support halving-related assets?

Yes — Bitcoin (BTC), which experiences halving every four years, is supported by Floin. Other halving-based assets may be added in the future depending on demand and regulatory standards.

Whether you're a long-term holder or just curious, it's helpful to be aware of the next halving — and how it might affect supply, miners, and prices.