Why Should BTC Reduce Every 4 Years?

The Bitcoin halving is a scheduled event that occurs approximately every four years. This event is encoded in the Bitcoin protocol and aims to control the issuance rate of new bitcoins. When halving occurs, the reward miners receive for validating and adding new blocks to the Bitcoin blockchain is cut in half. In other words, the number of new bitcoins generated every 10 minutes is cut in half.

There are several reasons why halving was implemented in the Bitcoin protocol:

1. Scarcity
By reducing the issuance rate of new bitcoins, the supply of the cryptocurrency is limited, which can increase its value in the market due to relative scarcity.

2. Inflation control
The halving helps control Bitcoin's inflation by limiting the number of new coins entering circulation. This provides a mechanism to keep the supply of bitcoins in check in the long run.

3. Long-term planning
By anticipating predictable halvings in the block reward, Bitcoin network participants can plan their mining activity and long-term investments with greater certainty.

In short, Bitcoin halving is a fundamental aspect of the cryptocurrency's design that helps maintain its integrity, scarcity, and long-term value.