Quick take
- The halving is written into Bitcoin's code and happens roughly every four years.
- The fourth halving in April 2024 cut the reward to 3.125 BTC per block; the next is expected around 2028.
- It slows new supply; it does not guarantee a higher price.
What actually halves
Miners who add a block to the Bitcoin blockchain receive a block subsidy of newly created bitcoin, plus transaction fees. The subsidy started at 50 BTC in 2009. Every 210,000 blocks, which takes about four years at one block every ten minutes, the software cuts it in half.
| Halving | Approximate date | Block height | Subsidy after |
|---|---|---|---|
| 1st | November 2012 | 210,000 | 25 BTC |
| 2nd | July 2016 | 420,000 | 12.5 BTC |
| 3rd | May 2020 | 630,000 | 6.25 BTC |
| 4th | April 2024 | 840,000 | 3.125 BTC |
| 5th (expected) | around 2028 | 1,050,000 | 1.5625 BTC |
Why Bitcoin does this
The schedule caps the total supply at 21 million coins and makes new issuance predictable. After each halving, fewer new coins enter the market each day. The last fraction of a bitcoin is expected to be mined around the year 2140.
What it does to miners
Overnight, miners earn half as many new coins for the same work and electricity. Less efficient operators may switch off unless the price or fees rise enough to compensate. Over the long run, the network's security will depend increasingly on transaction fees rather than new coins.
And the price?
Previous halvings were followed, months later, by large price rises, which is why they attract so much attention. But each cycle also had other drivers, such as interest rates, new investors and new products, and past patterns may not repeat. The halving is widely known in advance, so markets may price some of it in beforehand. Treat any "halving guarantee" as marketing.
Related reading
For the basics see Bitcoin explained simply; to test what a price change would mean for your holdings, use the crypto profit calculator.
Common questions
When is the next Bitcoin halving?
At block 1,050,000, expected around 2028. The exact date depends on how quickly blocks are mined.
Does the halving affect how many bitcoin I own?
No. It only changes how many new coins miners receive. Existing balances are unaffected.
Sources
- Bitcoin whitepaper and Bitcoin Core consensus rules (subsidy halving interval of 210,000 blocks)