What is Crypto Halving?

Crypto halving is a major event in the crypto chain where the reward for mining new blocks is reduced by half. Crypto halving is an integral aspect of cryptocurrencies like Bitcoin and the rest of the cryptos that follow the consensus model of Proof-of-Work (PoW). It's programmed into the cryptocurrency code and occurs at an interval, which is very crucial in managing the rate of inflation of the asset and the money supply quantity.
Key Features of Crypto Halving:
Purpose:

This procedure provides for a steady supply of the cryptocurrency over time, thus ensuring its scarcity and theoretically making it more expensive.
For example, Bitcoin has an overall supply cap of 21 million coins. Halving is specifically designed to slow the rate at which new Bitcoins enter circulation.
How It Works:

Miners use complicated mathematical procedures to validate transactions and add them to the blockchain.
Their reward for doing so is cryptocurrency.
Halving cuts the block reward by 50%. Bitcoin has a block reward halving every 210,000 blocks or about every four years.

Impact on Supply and Demand:

Since halving decreases the rate of newly issued coins, it creates an illusion of scarcity.
Bitcoin's price rises after every halving because of reduced supply alongside either steady or growing demand.
Examples:

Bitcoin Halvings:
1st Halving (2012): The reward per block was reduced from 50 BTC to 25 BTC.
2nd Halving (2016): The reward was reduced to 12.5 BTC.
3rd Halving (2020): The reward now is reduced to 6.25 BTC.
The reward will reduce to 3.125 BTC in the following halving of 2024.
Impact on Miners:
Halving reduces miners' income from block rewards, which may make mining less profitable if the cryptocurrency's price doesn't increase significantly.
Miners typically rely on transaction fees and prices to increase because of fewer incentives.

Market Speculation:

Crypto enthusiasts are eagerly waiting for these halvings that create price hikes both before and after the event based on speculation buying.
Other Coins with Halving
Litecoin (LTC): Every 840,000 blocks ~4 years)
Bitcoin Cash (BCH): Coinbase follows the schedule of Bitcoin's halving
Zcash (ZEC): Provides periodic halving events.
Halving events are significant in shaping the dynamics of cryptocurrency markets, affecting miners, investors, and traders alike.