What is the Bitcoin halving?
Every 210,000 blocks, the reward for mining new Bitcoin is cut in half. What that means for supply, miners and price.
New bitcoins are created as a reward for miners who add blocks to the blockchain. Every 210,000 blocks, roughly every four years, that reward is cut in half. This event is called the halving.
The schedule so far
- 2009: 50 BTC per block
- November 2012: 25 BTC
- July 2016: 12.5 BTC
- May 2020: 6.25 BTC
- April 2024: 3.125 BTC
The schedule is written into Bitcoin's code. It is why the total supply can never go above 21 million coins. The last fraction of a bitcoin will be mined around the year 2140.
Why people watch it
A halving cuts the flow of new coins entering the market. In past cycles, Bitcoin's price rose strongly in the 12 to 18 months after each halving. There were only a few cycles, and many other things changed at the same time, so past patterns are not a promise.
What it means for miners
Miners' income in BTC halves overnight. Less efficient miners may switch off, which can briefly slow the network until the difficulty adjusts. Over time, transaction fees are meant to replace more of the block reward.