The Bitcoin halving is an event that happens automatically in the protocol every 210,000 blocks, roughly every four years. At each halving, the block subsidy that miners receive is cut in half.
At the beginning:
- The first miners earned 50 new bitcoins per block.
- Then it dropped to 25, then 12.5, then 6.25, and so on.
- Over time, the subsidy trends toward zero.
Why it exists:
- Controlled supply
Bitcoin has a maximum supply limit of 21 million coins. The halving schedule is how the protocol distributes new coins over time without a central authority. - Monetary policy
The halving creates a predictable, transparent monetary policy. Everyone can see the schedule and no one can secretly print extra coins. - Incentives for miners
Early on, high subsidies attract miners to secure the network. As the subsidy shrinks, transaction fees are expected to become a larger part of miner revenue, especially on high throughput chains.
Why people talk about it so much:
- On speculative networks, halvings often affect price expectations, since new coin supply slows down.
- For miners, halvings are serious business. They immediately cut block reward income. Miners with inefficient hardware or expensive electricity may no longer be profitable unless they rely on transaction fees or better scaling strategies.
In short, the Bitcoin halving is a built in schedule that reduces new coin creation over time. It keeps the supply scarce, gives the system credibility, and forces miners and businesses to plan for a world where transaction volume matters more than inflation rewards.