economicsfundamentals

Halving

Definition

The halving is a built-in rule that cuts the number of new bitcoins created per block by 50%. It triggers every 210,000 blocks (roughly four years) and is a key part of Bitcoin’s fixed supply schedule, ensuring that all 21 million coins are released gradually over time.

Example

After the 2024 halving, miners receive 3.125 BTC per block instead of 6.25 BTC.

Related Terms

Bitcoin

A decentralized digital currency that operates without a central bank or single administrator.

Mining

The process of using computational power to verify transactions and add new blocks to the blockchain.

Block reward

The amount of new Bitcoin a miner receives for successfully adding a block to the blockchain.

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