I learned this the hard way myself, so it really stuck with me.

Bitcoin’s issuance rules are written into its code: every 210,000 blocks, the reward for each new block is cut in half. There have been four halvings so far. This article goes through them in chronological order, including the block height at which each occurred and how much the reward was reduced.

Coins mentioned in this article: $BTC Current price: 84,218.34 (24h +1.26%).

■ How is a halving triggered?

Bitcoin halvings aren’t based on the calendar—they’re based on block height: every 210,000 blocks, the block reward is cut in half. At an average of 10 minutes per block, 210,000 blocks take about four years, which is why people often say there’s a halving “every four years.”

Block rewards are denominated in satoshis in the protocol. Each halving cuts this amount in half. As fewer and fewer new coins are issued, this is how the eventual supply cap of about 21 million coins is reached.

■ The four halvings so far

The first halving took place on November 28, 2012, at block height 210,000, reducing the block reward from 50 BTC to 25 BTC. The second took place on July 9, 2016, at block height 420,000, reducing the reward to 12.5 BTC.

The third halving took place on May 11, 2020, at block height 630,000, reducing the reward to 6.25 BTC. The fourth took place on April 20, 2024 (UTC), at block height 840,000, reducing the reward to 3.125 BTC.

■ When is the next one?

The next halving will occur at block 1,050,000, and the block reward will drop from 3.125 BTC to 1.5625 BTC. The exact date depends on the actual block production rate at the time. Dates shown by various countdowns are estimates, and they become more accurate as the event gets closer.

■ What does the halving change?

The halving directly changes how many new coins are issued with each block. Miners earn income from two sources: block rewards and transaction fees. As the reward is halved over and over, transaction fees make up an increasingly large share of miners’ income.

Halvings are often discussed alongside market cycles, but the protocol does not prescribe how prices will move. So far, there have only been four instances to look at. Keeping the rules separate from interpretations of the market makes it easier not to get swept up in the emotions.

■ The takeaway

Just remember a few numbers: a halving happens every 210,000 blocks; there have been four so far; the current block reward is 3.125 BTC; and the next halving is at block 1,050,000. Understanding the mechanics is meant to help you make clearer decisions, not predict whether prices will rise or fall.

What would you like to hear about next: contracts or something else?

This content is for informational purposes only. Make your own decisions when buying or selling.