The bitcoin halving is a scheduled event that occurs approximately every four years (every 210,000 blocks) built into the protocol to reduce the rate at which new bitcoins are created.
This event effectively halves the reward that miners receive for adding new blocks to the bitcoin blockchain. Initially, the reward was 50 bitcoins per block; it has undergone several reductions since its inception.
| Halving Event | Date | Block Reward (BTC) |
|---|---|---|
| Genesis / Initial | 2009 | 50 |
| 1st Halving | November 2012 | 25 |
| 2nd Halving | July 2016 | 12.5 |
| 3rd Halving | May 2020 | 6.25 |
| 4th Halving | 20 April 2024 | 3.125 |
This reduction not only emphasises bitcoin’s scarcity but also reinforces its value proposition as a decentralised digital asset. It aligns with bitcoin’s deflationary monetary policy, gradually decreasing the rate of new creation until it reaches the maximum cap of 21 million coins.
The inclusion of the halving events in the bitcoin protocol from the very beginning indicates that it was always intended to be a deflationary currency, making it attractive as a long-term store of value.