Bitcoin rally: What is bitcoin halving that is seen responsible for the bull run?

livemint.com:

Although bitcoin fell marginally on Tuesday, it continues to trade above $52,330. In the past one month alone, the cryptocurrency has risen by around 26 percent. In the past six months, the token has gone up by 100 per cent.

There are a number of reasons cited for this rally. One was the recent approval to spot bitcoin ETF by the US regulator Securities and Exchange Commission (SEC).

ALSO READ: Bitcoin surges to $50,000 for the first time since 2021 on ETF demand

It was followed by the offering of BlackRock and Fidelity.

The second key reason for the ongoing rally is the upcoming bitcoin halving that is slated to happen in the middle of 2024.

Edward Snowden, former NSA (National Security Agency) contractor, has put his weight behind the token’s likely surge.

He wrote on X platform: “"Bitcoin is the most significant monetary advance since the creation of coinage."

One of the significant events of bitcoin is halving when the reward for mining is reduced by half. The last halving was done on May 11, 2020 after which the network participants validating transactions are awarded 6.25 bitcoins for each block mined successfully.

The next halving is slated to happen in mid-2024 after which the block reward will decline to 3.125 bitcoins.

The final halving will occur in the year 2140 when the number of bitcoins circulating will reach the supply of 21 million. As of now, 19 million bitcoins have been mined, leaving only two million more to be mined.

“One of the most important features of Bitcoin is its limited supply and issuance mechanism," says Forbes quoted Bruce Fenton, CEO of Chainstone Labs, as saying.

To be able to understand the concept behind validating a transaction, one must understand how bitcoin works.

As we are aware