A halving is a term that refers to a process of reducing the block subsidy to miners. The halving ensures that a crypto asset will follow a steady issuance rate until its maximum supply is eventually reached.
This occurs every 210,000 blocks when it halves the mining reward, in this instance, from 12.5 BCH to 6.25 BCH per block. This iteration of the halving is less than a week away for BCH and around 42 days at time of writing for BTC. The reason for the difference in halving dates relates to the fact that Bitcoin Cash was able to find blocks much quicker than its counterparts in large part due to their Difficulty Adjustment Algorithm (DAA) which significantly lowered block times and was a big improvement over the previous code.
The “halvening” is an event that happens every four years and this will be one that many around the world are anxious to be a part of. BCH will be the first to go through the process and with less BCH introduced into the world after the halving, scarcity will be a big factor and a word thrown around as we get closer to the remaining 2.6 million coins left to mine.
The economic theory regarding scarcity states that when there is a limited amount of a good and the demand for the good outweighs the supply there is a mismatch in the equilibrium. This causes the market to rise as interest peaks and with the “halvening” less than a week away interest has begun.