Bitcoin halving is likely this week — here's what you need to know

The bitcoin "halving" is almost upon us.

This technical event, written in bitcoin's code, happens every four years. In simple terms, it is when the rewards for bitcoin miners are cut in half. This reduces the pace at which new bitcoins enter the market.

Since there will ever only be 21 million bitcoins, the halving serves to create more scarcity.

In the past, halving has preceded massive rises in bitcoin prices to new all-time highs. But this time, things are different.

Bitcoin has already hit a new record high, before the halving has taken place. That's because the approval of spot bitcoin exchange-trade funds has excited the market and brought in lots of demand for the cryptocurrency.

In the latest episode of CNBC Tech's "Beyond the Valley" podcast — which you can listen to above — Tom Chitty and I discuss what exactly the halving is and how this latest bitcoin cycle is different from the past.

If you have any thoughts on this or previous episodes, please email us at [email protected].

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Here is a transcript of the episode of "Beyond the Valley" released on Apr. 11, 2024. It has been edited for clarity. 

Tom Chitty

The halving will soon be upon us, not some medieval ritual. The halving which happens every four years is when the rewards for mining bitcoin are cut in half, which should reduce supply and increase demand for the cryptocurrency. Arjun has been at Paris Blockchain Week, Europe's biggest blockchain and digital assets event to find out why the halving is so important, what it will mean for the price of bitcoin and how this halving cycle may be different to before. And we'll also