Why Does the Bitcoin Halving in 2024 Matter, and How Does it Work?

The Bitcoin halving event, slated for 2024, is a pivotal aspect of the cryptocurrency's monetary policy, occurring approximately every four years. During this event, the rate at which new bitcoins are generated through mining is halved, reducing the supply of new coins entering circulation. This mechanism is programmed into the Bitcoin protocol to control inflation and ensure scarcity, mirroring the behaviour of finite commodities like gold. As the supply decreases, assuming demand remains constant or increases, basic economic principles suggest that the price of Bitcoin may experience upward pressure over time. Consequently, the Bitcoin halving is closely watched by investors, traders, and enthusiasts alike, as it directly impacts the dynamics of supply and demand within the Bitcoin ecosystem, potentially influencing its price trajectory and overall market sentiment.