In brief. Every four years, the Bitcoin halving event occurs, reducing mining rewards by half according to predetermined rules within the Bitcoin code. The amount of Bitcoin distributed to miners is halved during this event, which is also referred to as the halvening. This is the reason- and the method- of how it operates. Bitcoin has a limited supply. In order to grasp the concept of the Bitcoin halving, it is important to comprehend the principles related to its supply. Satoshi Nakamoto, the creator of Bitcoin, believed that scarcity could generate value in situations where it did not previously exist. In essence, there is a unique value to certain artistic masterpieces, a finite amount of gold, and only 21 million Bitcoins in existence. Unlike traditional currencies like the U.S. dollar, Bitcoin introduced the concept of scarcity in the digital realm for the first time. Originally, fiat currencies were established with strict regulations in place. For example, to produce one dollar, the U.S. government was required to possess a specific quantity of gold as backing. This was referred to as the gold standard. As economies modernized and faced periods of severe financial uncertainty, such as the Great Depression and World War II, these regulations were gradually weakened as governments printed more money to boost struggling economies. Over the years, these regulations developed into the current system where governments have the ability to produce money as they see fit. Satoshi Nakamoto was concerned about the potential negative consequences of fiat money devaluation, so he implemented measures in the form of code to limit the creation of more Bitcoin by any one entity. What exactly is the concept of Bitcoin halving?