What Is Bitcoin Halving?

Q: When was the last Bitcoin halving?

The most recent Bitcoin halving occurred in April 2024 (the fourth halving). The block reward dropped from 6.25 BTC to 3.125 BTC per block. Previous halvings occurred in 2012 (50 to 25 BTC), 2016 (25 to 12.5 BTC), and 2020 (12.5 to 6.25 BTC).

Q: When is the next Bitcoin halving?

The next Bitcoin halving is expected around 2028. It will reduce the block reward from 3.125 BTC to 1.5625 BTC. Halvings will continue approximately every four years until all 21 million Bitcoin have been mined, estimated around the year 2140.

Q: Does halving affect Bitcoin's price?

Historically, Bitcoin halvings have preceded significant price increases, though the relationship is not guaranteed. The mechanism is supply reduction: if demand stays constant and new supply entering the market drops by 50%, basic economics suggests upward price pressure. Past halvings occurred before the 2013, 2017, and 2020-2021 bull markets.

Q: Why does Bitcoin halve?

Halving is built into Bitcoin's code to control the supply issuance schedule. Satoshi Nakamoto designed it to mimic the scarcity properties of commodities like gold - where supply increases over time but at a decreasing rate. It ensures that the total supply approaches but never exceeds 21 million Bitcoin.

Bitcoin halving is a programmed event where the reward paid to miners for adding a new block to the blockchain is cut in half. It occurs every 210,000 blocks - approximately every four years. Halvings are how Bitcoin's code enforces its fixed supply: by continually reducing the rate at which new Bitcoin is created until no new Bitcoin is issued at all.

Halving is one of Bitcoin's most elegant design choices. It creates a predictable, transparent supply schedule that cannot be altered by any government, company, or individual - making Bitcoin's monetary policy the most auditable in history.

The Halving Schedule

Halving	Date	Block Reward Before	Block Reward After
Genesis	January 2009	-	50 BTC
1st Halving	November 2012	50 BTC	25 BTC
2nd Halving	July 2016	25 BTC	12.5 BTC
3rd Halving	May 2020	12.5 BTC	6.25 BTC
4th Halving	April 2024	6.25 BTC	3.125 BTC
5th Halving	~2028 (estimated)	3.125 BTC	1.5625 BTC

Why Does Bitcoin Halve?

Satoshi Nakamoto designed the halving to control Bitcoin's supply issuance in a way that mirrors the scarcity of physical commodities like gold. Gold miners extract gold at a roughly decreasing rate over time as easy deposits are exhausted. Bitcoin's halvings create a mathematically guaranteed version of this: the rate of new supply decreases on a known schedule.

The result is a disinflationary monetary system. Early in Bitcoin's history, thousands of new Bitcoin entered circulation every day. By 2030, fewer than 200 new Bitcoin per day will be created. By 2040, fewer than 100. Eventually the block reward becomes so small it rounds to zero, and the final Bitcoin will have been issued.

What Happens to Miners After Halving?

Halvings immediately cut miner revenue in half (in BTC terms). Miners that are not profitable at the new reward level shut down. This temporarily reduces the network's hash rate until difficulty adjusts downward to match the remaining miners. The network self-corrects within two weeks through the difficulty adjustment mechanism.

Long term, the assumption is that as Bitcoin's price increases over time, the value of even a smaller block reward compensates for the reduction in coins earned. Transaction fees are also expected to become increasingly significant as the block subsidy shrinks.

Understand Bitcoin's Supply Model Visually

Bitcoin From Scratch covers Bitcoin's monetary design - including halvings, the 21 million cap, and why this makes Bitcoin fundamentally different from every fiat currency - with 3D animated lessons that make the concepts clear.