Bitcoin Halving Explained
Updated 2026 • Beginner-Friendly Guide
The Bitcoin halving is one of the most important events in the Bitcoin system. It controls how new bitcoins are created, enforces scarcity, and plays a major role in Bitcoin’s long-term economic design.
What Is the Bitcoin Halving?
The Bitcoin halving is a built-in event that reduces the number of new bitcoins created every time a new block is mined.
Roughly every four years, the reward miners receive for securing the network is cut in half — automatically, by code.
Why Does Bitcoin Have a Halving?
Bitcoin was designed to have a fixed supply of 21 million coins. Unlike fiat money, new bitcoin cannot be created whenever someone decides to print more.
The halving ensures:
- Predictable monetary policy
- Decreasing issuance over time
- Increasing scarcity
- No central control over supply
How Bitcoin Issuance Works
New bitcoins are created through mining. When a miner successfully adds a block to the blockchain, they receive a reward.
This reward has two parts:
- Block subsidy: newly created bitcoin
- Transaction fees: paid by users
Bitcoin Halving Schedule (So Far)
Bitcoin halvings occur every 210,000 blocks. Historically, this has happened approximately every four years.
- 2009: 50 BTC per block
- 2012: 25 BTC per block
- 2016: 12.5 BTC per block
- 2020: 6.25 BTC per block
- 2024: 3.125 BTC per block
Each halving brings Bitcoin closer to its maximum supply.
What Happens After All 21 Million Bitcoins Are Mined?
Once all bitcoins are issued (expected around the year 2140), miners will no longer receive block subsidies.
Instead, they will be paid entirely through transaction fees. This transition is gradual and designed to maintain network security.
How the Halving Affects Miners
The halving directly reduces miners’ revenue from block rewards. This means:
- Less efficient miners may shut down
- More efficient miners remain competitive
- The network naturally adjusts difficulty
This process strengthens Bitcoin by pushing miners toward efficiency and low-cost energy.
How the Halving Affects Bitcoin’s Supply
The halving reduces the rate of new supply entering the market. Over time, this makes Bitcoin more scarce.
Unlike traditional money, where supply can increase unpredictably, Bitcoin’s issuance is fully transparent and known decades in advance.
Does the Halving Affect Bitcoin’s Price?
Historically, Bitcoin’s price has experienced major cycles around halving events, but the halving itself does not guarantee price increases.
Price is influenced by:
- Supply and demand
- Market sentiment
- Global economic conditions
- Adoption and regulation
Why the Halving Matters for Bitcoin’s Long-Term Design
The halving is a core part of what makes Bitcoin unique. It enforces discipline in a way no central authority can change.
This makes Bitcoin:
- Predictable
- Scarce
- Resistant to inflation
- Trust-minimized
Common Misunderstandings About the Halving
“The halving creates scarcity instantly”
Scarcity builds over time. The halving gradually reduces new supply — it doesn’t remove existing coins.
“Miners will quit after the halving”
The network adjusts difficulty. Mining continues as long as it is economically viable.
“Bitcoin will stop working after the last halving”
Bitcoin transitions to a fee-based security model, which is already happening today.
Who Should Care About the Bitcoin Halving?
- Long-term Bitcoin holders
- Miners and infrastructure operators
- Economists studying digital money
- Anyone learning how Bitcoin works