A Monetary Policy You Can Verify
Most currencies have no fixed rules about how much money can exist. Central banks create new money when they decide it is needed. You have no say in that decision.
Bitcoin is different. Its monetary policy was set when it launched in January 2009. The rules are written in open-source code. Anyone can read them. No one can change them without agreement from the entire network.
The result is a money supply that is predictable, transparent, and capped at exactly 21 million bitcoin. That is the supply cap.
How New Bitcoin Enter Circulation
New bitcoin are created through mining. When a miner adds a new block to the blockchain, they receive a block reward — a set number of freshly created bitcoin.
This reward started at 50 BTC per block when Bitcoin launched. Every 210,000 blocks (roughly four years), the reward gets cut in half. This event is called the halving.
Here is the full halving history:
- November 28, 2012: 50 BTC dropped to 25 BTC
- July 9, 2016: 25 BTC dropped to 12.5 BTC
- May 11, 2020: 12.5 BTC dropped to 6.25 BTC
- April 19, 2024: 6.25 BTC dropped to 3.125 BTC
The next halving is expected around March 2028. The reward will drop to 1.5625 BTC.
As of early 2026, roughly 19.9 million of the 21 million bitcoin have already been mined. That is over 95% of the total supply. The last bitcoin will be mined around the year 2140.
What Happens When All Bitcoin Are Mined
After the last bitcoin is created, miners will no longer receive block rewards. They will earn only transaction fees for processing payments.
This does not break the network. Mining will continue because fees give miners a reason to keep securing the blockchain. The transition happens gradually over more than a century. Each halving shifts miners slightly more toward fee-based income.
Why This Matters
Bitcoin’s monetary policy is the opposite of what most people are used to.
| Bitcoin | Central Banks | |
|---|---|---|
| Rules | Fixed in code since 2009 | Changed by committee meetings |
| Transparency | Anyone can audit the supply | Decisions often lack full visibility |
| Supply | Capped at 21 million | No limit |
| Inflation | Decreasing, approaching zero | Typically targets 2% per year |
With traditional currencies, governments create more money to respond to economic events. This can lead to inflation — your money losing purchasing power over time.
Bitcoin’s fixed supply creates scarcity. No one can print more. No committee can vote to increase the cap. The rules are enforced by thousands of nodes around the world. Even miners cannot override them.
This is why some people call Bitcoin “sound money.” Its value comes from rules that are known in advance and cannot be bent.
What’s Next
To understand why scarcity gives Bitcoin value, read why does Bitcoin have value. For a closer look at how blocks are created, see proof of work. To learn about the reward miners receive, read about the block reward.