What Is the Bitcoin Halving and Why Does It Matter?

The Event That Makes Bitcoin Scarce

Every four years (approximately), something remarkable happens in the Bitcoin network: the reward for mining a new block gets cut in half. This event is called the "halving" — and it's one of the most important features of Bitcoin's design.

How It Works

Bitcoin miners receive a reward for adding new blocks to the blockchain. When Bitcoin launched in 2009, this reward was 50 BTC per block. The halving schedule is as follows:

• •2009-2012: 50 BTC per block
• •2012-2016: 25 BTC per block
• •2016-2020: 12.5 BTC per block
• •2020-2024: 6.25 BTC per block
• •2024-2028: 3.125 BTC per block

Each halving cuts the rate of new Bitcoin creation in half. This continues until approximately 2140, when the last Bitcoin will be mined.

Why It Matters for Price

The halving reduces new supply while demand can continue to grow. Basic economics: if supply growth slows and demand stays constant or increases, price tends to rise.

Historically, each halving has preceded a major bull run, though the relationship isn't guaranteed to continue.

Why It Matters for Scarcity

The halving makes Bitcoin the most predictably scarce asset ever created. Unlike gold (where mining can increase if prices rise), Bitcoin's supply schedule is unchangeable. No matter how many miners join the network or how high the price goes, new Bitcoin creation follows the halving schedule exactly.

The Bigger Picture

By 2030, over 97% of all Bitcoin that will ever exist will have been mined. By 2140, the supply reaches exactly 21,000,000 — not one satoshi more. No human decision can change this. It's enforced by mathematics and verified by every node on the network.

Explore our full How New Bitcoin Are Created module for the complete mathematical breakdown.