Definition
Bitcoin halving is a recurring event in the Bitcoin protocol that reduces the block reward granted to miners by 50% at a specific block height. It is designed to control the rate at which new Bitcoin enters circulation and to create a predictable supply schedule. By cutting the block reward at fixed intervals, the halving process gradually lowers the effective inflation rate of Bitcoin. This mechanism continues until the maximum supply of Bitcoin is nearly reached.
Each Bitcoin halving is triggered automatically when the blockchain reaches a predetermined block height encoded in the protocol. The process directly affects the block reward, which is the amount of new Bitcoin created and awarded for adding a valid block to the chain. As the block reward declines with each halving, new issuance of Bitcoin slows, making the asset increasingly scarce over time. This programmed scarcity is a core feature of Bitcoin’s monetary design.
Context and Usage
Bitcoin halving is closely tied to concepts such as block reward, inflation, and the overall supply dynamics of Bitcoin. Because the halving reduces the number of new coins created per block, it has a direct impact on Bitcoin’s long-term inflation profile. The event is anticipated within the Bitcoin community and is often used as a reference point when discussing the asset’s issuance schedule and scarcity. In technical discussions, it is usually identified by the block height at which the reward change occurs.
As a process, Bitcoin halving is fundamental to how Bitcoin manages its fixed maximum supply. It distinguishes Bitcoin from systems where monetary supply can be adjusted more flexibly. Over successive halvings, the block reward trends toward zero, and the creation of new Bitcoin slows dramatically. This predictable pattern of decreasing issuance is central to how Bitcoin is positioned as a limited-supply digital asset.