Halving
The halving is an event which reduces the issuance rate of bitcoin by half every four years.
The halving is an event which reduces the issuance rate of bitcoin by half every four years. Bitcoin’s issuance schedule is precisely defined by an algorithm in Bitcoin’s code. This algorithm allows a certain amount of new bitcoin to be minted in each block, as compensation for the miner of the block.
This new bitcoin is called the block subsidy, and at Bitcoin’s inception, it was 50 BTC per block. However, the subsidy is cut in half in an event called the halving, which takes place every 210,000 blocks—roughly every four years. This process will continue until the subsidy reaches zero, by which time over 7 million blocks will have been mined across 34 halvings.
A Bitcoin halving is a programmed event that cuts the block reward miners receive in half approximately every four years, or every 210,000 blocks. Onramp helps investors understand halving events and their potential impact on Bitcoin supply dynamics and price.
Frequently Asked Questions
What is a Bitcoin halving?
A Bitcoin halving reduces the mining reward by 50% every 210,000 blocks, approximately every four years. The most recent halving occurred in April 2024, reducing the block reward from 6.25 to 3.125 BTC.
When is the next Bitcoin halving?
The next Bitcoin halving is expected around 2028, when the block reward will decrease from 3.125 to 1.5625 BTC. There will be a total of 32 halvings before all 21 million Bitcoin are mined.
How does the halving affect Bitcoin price?
Historically, Bitcoin halvings have preceded significant price increases due to reduced new supply. Onramp provides educational resources to help investors understand supply dynamics and their potential market impact.
