Definition
Bitcoin's halving reduces the mining reward by half every 210,000 blocks (~4 years), controlling monetary inflation. Starting at 50 BTC/block in 2009, rewards halved to 25 (2012), 12.5 (2016), 6.25 (2020), and 3.125 (2024). Each halving reduces new supply, historically preceding major price appreciation within 12-18 months. By 2140, all 21 million Bitcoin will be mined.
lightbulb Example
April 2024 halving: block reward dropped from 6.25 to 3.125 BTC. Annual new supply fell from ~328,500 to ~164,250 BTC. At $60K/BTC, this reduced annual sell pressure from miners by ~$9.9 billion—a significant supply shock.
verified_user Key Points
- Block reward halves every ~4 years
- Controls Bitcoin monetary inflation
- Historically precedes major price appreciation
- Total supply capped at 21 million BTC