What is the bitcoin halving?

Halving: About every four years the reward for new bitcoin is cut in half. As a result new supply arrives more slowly.

New bitcoin is created as a reward for computers that add blocks to the blockchain. After every 210,000 blocks that reward is cut in half. That works out to about every four years.

The last halving was in April 2024. The reward went from 6.25 to 3.125 bitcoin per block. The next one is expected around 2028.

Because of the halving, new supply arrives more and more slowly. In total there can never be more than 21 million bitcoin.

Example
About 144 blocks are added each day. Before April 2024 that meant 144 times 6.25, which is 900 new bitcoin a day. After that 144 times 3.125, which is 450 a day. Say one bitcoin is worth 60,000 euros, then new supply drops by 27 million euros a day.

Watch out
A halving is no guarantee of a higher price. The price depends on supply and demand, and bitcoin remains very volatile.

Read more in the guide The bitcoin halving: what changes and what does not.

Learn it step by step
In the free Academy you learn terms like this in short lessons, with a certificate for every level.
Take the free lesson