The bitcoin halving
What Is the Bitcoin Halving?
If you’ve spent any time studying Bitcoin, you’ve heard about *the halving*. It happens roughly every four years. It’s widely anticipated. And it plays a central role in Bitcoin’s long-term monetary design.
But what exactly is it — and why does it matter?
Let’s break it down from first principles.
Bitcoin’s Fixed Supply: 21 Million. No Exceptions.
At the core of Bitcoin is a simple but powerful rule:
Only 21 million BTC will ever exist.
Not approximately. Not “unless policy changes.” Exactly 21 million — enforced by code and verified by a decentralized network of nodes.
Unlike fiat currencies such as the United States dollar or Canadian dollar, Bitcoin’s supply cannot be expanded by central banks or governments. There is no committee that can vote to increase issuance.
New bitcoin enters circulation through mining — the process by which a global network of specialized computers validates transactions and secures the blockchain. In return for performing this work, miners receive newly issued BTC as a block reward.
The halving is the mechanism that reduces that reward over time.
What Happens During a Halving?
Approximately every 210,000 blocks (about four years), the mining reward is cut in half.
Here’s the issuance history:
2009– 50 BTC per block
2012 – 25 BTC
2016 – 12.5 BTC
2020 – 6.25 BTC
2024 – 3.125 BTC
The next halving is expected in 2028, when the reward will drop to roughly 1.5625 BTC per block.
Each halving reduces the rate at which new supply enters the market. Over time, issuance approaches zero — until the final bitcoin is mined around the year 2140.
This supply schedule was embedded into the protocol by **Satoshi Nakamoto** and has operated exactly as programmed since launch.
Why the Halving Matters
The halving directly impacts Bitcoin’s inflation rate.
When block rewards are cut in half, the daily number of new coins entering circulation also drops by 50%. That means miners — who often sell a portion of their rewards to cover operational costs — have fewer new coins to distribute into the market.
Basic supply and demand dynamics suggest that if demand remains constant or increases while new supply declines, upward price pressure can emerge over time.
Historically, major bull markets have followed prior halving events, though past performance does not guarantee future results.
The 2024 halving occurred during a particularly important phase: the launch of U.S. spot Bitcoin ETFs, including products such as the iShares Bitcoin Trust from BlackRock. That combination of reduced issuance and expanded institutional access marked a structural shift in demand dynamics.
What Happens to Miners?
As rewards shrink, mining becomes more competitive.
Operators must:
* Use efficient hardware
* Secure low-cost energy
* Optimize capital allocation
* Manage treasury strategy carefully
The result is industry maturation. Mining has evolved from hobbyist-level participation into a capital-intensive global infrastructure sector.
One notable development: despite the 2024 reward reduction, Bitcoin’s total hashrate — the measure of computing power securing the network — reached all-time highs in 2025 and 2026.
Lower issuance. Higher security. Stronger network.
That dynamic reinforces long-term confidence in the protocol.
Bitcoin’s Monetary Policy vs. Central Banking
Central banks publish policy targets, adjust interest rates, and expand or contract balance sheets based on economic conditions.
Bitcoin’s monetary policy, by contrast, is:
* Transparent
* Algorithmic
* Non-discretionary
* Enforced by decentralized consensus
Its issuance schedule does not respond to recessions, elections, or political pressure.
Each halving increases Bitcoin’s stock-to-flow ratio — the relationship between existing supply and new production. On that metric, Bitcoin has already surpassed gold in scarcity, and it becomes progressively harder over time.
This is what credible, rule-based monetary policy looks like when implemented in software.
The Bottom Line
The Bitcoin halving isn’t just a technical event on a calendar. It is the mechanism that enforces long-term scarcity.
Every four years:
* Inflation declines
* Supply issuance tightens
* The network matures
* The economic model proves itself again
Whether you’re analyzing past cycles or preparing for 2028, the halving is central to understanding Bitcoin’s long-term value proposition.
Predictable supply. No surprise dilution. No central authority.
And if you choose to hold it yourself — in your own wallet — you participate directly in that system.
Because in Bitcoin, ownership is simple:
Not your keys, not your coins.
With your keys? That’s sovereign custody.