Bitcoin halving coming to control inflation!

.Bitcoin half is knocking on the door in front of us. There is a strong possibility that Bitcoin will halve on the 20th of next month. And this Bitcoin half is based on speculation and the ups and downs of the market. At this point the price of Bitcoin is basically seeing a huge increase that we have seen during or after the previous Bitcoin Halves. As the price of Bitcoin continued to rise since the beginning of this year and recently Bitcoin crossed its previous all-time high price and reached new highs.

Since then, the price of Bitcoin has fallen by 6 to 7 percent. Bitcoin halving occurs every four years and during this time the reward for Bitcoin miners is halved as well as the production of Bitcoin is halved in the halving process. This creates a shortage and helps the price of Bitcoin rise. And at that time we see the price of Bitcoin to increase a lot. However, such a process is part of Bitcoin's monetary policy. The main objective of halving is to control inflation.

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Most of us are familiar with inflation. Inflation basically occurs when supply is greater than demand. Inflation refers to the rise in prices of goods and services. Which usually happens due to excess money supply. In simple terms, there must be a balance between the stock of goods and the quantity of money in a country's market. We know that new bitcoins are produced through bitcoin mining. As a result, Bitcoin production continues to increase. If this continues then the supply of Bitcoin will increase and its price will increase. Then we will see an inflation in Bitcoin. So every four years the reward for Bitcoin miners is halved and Bitcoin producers are reduced. Such a move is mainly to control inflation and the Bitcoin halving.

Currently the fourth Bitcoin halving will be completed. The first bitcoin halving was in 2012. Then the reward for each block of bitcoin mining is reduced from 50 bitcoins to 25 bitcoins. Then in 2016 when the Bitcoin halving was completed the number of rewards was reduced to 12 and a half. The last bitcoin halving was in 2020 when it dropped to just 6.25 bitcoins.

During the Bitcoin halving next month, the halving reward will further decrease to 3.12 Bitcoins per block. On the other hand, the news of Bitcoin reduction and the US Exchange Commission's approval of Bitcoin ETFs are increasing its price. This digital currency is making records one after another.

Moreover, another important event happened this year which was the approval of the first spot Bitcoin Exchange Traded Fund (ETF). which has been approved by the United States Securities and Exchange Commission. As a result, new individuals and institutional investors have come forward in the market or it is expected that more will come. And since its approval, the price of Bitcoin has continued to rise. However, every four years Bitcoin is halved, essentially reducing the supply of Bitcoin in order to keep inflation under control.