The Bitcoin network reduces the number of bitcoins awarded to miners in new block rewards by 50% approximately every four years. This event is called the Bitcoin halving.

What is Bitcoin? What is the Bitcoin network? Please refer to the "What is Bitcoin" section.

While central banks determine the supply of fiat currency through monetary policy and can increase or decrease the supply of fiat currency under different circumstances, the supply of Bitcoin is determined by the Bitcoin algorithm Predetermined, this is written into the Bitcoin code and therefore cannot be changed.

There is only one way to issue new Bitcoins - block rewards. The Bitcoin network brings new Bitcoins into circulation by rewarding them to miners who process and record transactions.

What is a block reward? How to get block rewards? Please refer to the "What is Mining" chapter.

The block reward given to Bitcoin miners for processing transactions is halved every 210,000 blocks, or approximately every four years. For example, initially, a miner who mines a new block receives 50 new Bitcoins, which is reduced to 25 during the first Bitcoin halving.

The first Bitcoin halving occurred on November 28, 2012. When the first Bitcoin halving occurred, the number of Bitcoins in circulation had reached half of the total supply - 10.5 million.

The second halving was on July 9, 2016, and the most recent halving was on May 11, 2020. The next Bitcoin halving is expected to occur around May 19, 2024.

There will be a total of 32 Bitcoin halving events. The last halving will occur in 2140. After the 32nd halving is completed, no new Bitcoin will be created as its maximum supply of 21 million will have been reached. After that, there will be no more block rewards. Miners will only be compensated through transaction fees.

Currently, more than 19 million Bitcoins have been issued (more than 90% of the total).

Bitcoin’s inflation rate, as determined by block rewards, was 50% in 2011, but after the first halving in 2012, it plummeted to 12%. The third halving in 2016 lowered it to 4-5%. It now has an inflation rate of 1.77%.

Each halving event has historically led to a bull run in Bitcoin. When block rewards are halved, Bitcoin’s inflation rate decreases, meaning fewer new Bitcoins are available for sale. Assuming demand remains constant, the Bitcoin halving will directly lead to an increase in the price of each Bitcoin.

After each Bitcoin halving, miners may shift mining power away from the Bitcoin network as their rewards are halved, assuming the Bitcoin price remains unchanged. Fewer miners means a less secure Bitcoin network.

However, the Bitcoin price typically rises by more than 50% after each Bitcoin halving, which more than compensates for the reduction in mining rewards by more than 50%. Therefore, the number of Bitcoin miners has not been affected by the Bitcoin halving. Conversely, as the price of Bitcoin increases, mining remains profitable even though the reward per block decreases, so the number of miners tends to increase. However, in future Bitcoin halvings, this may no longer be true.