The Bitcoin halving is a crucial event in its ecosystem, directly related to the supply mechanism and scarcity value. Below, in plain language, we break down the core logic, importance, and historical context of this mechanism.

1. The Core Definition and Origin of Bitcoin Halving

Satoshi Nakamoto clearly outlined two core settings in the Bitcoin whitepaper: first, a total supply cap of 21 million coins; second, the only production method is mining. To avoid inflation and maintain scarcity, he also designed the "halving mechanism" to regulate the production speed.

The rules of this mechanism are clear: every 210,000 blocks generated, the Bitcoin reward per block for miners is reduced to 50% of the previous cycle. Since the Bitcoin network produces a block on average every 10 minutes, the halving event occurs approximately every 1,458 days (about 4 years), which is the core origin of the "Bitcoin halving".

2. Why Does the Halving Have Such a Significant Impact?

The Bitcoin halving is not just a simple production adjustment, but a core pillar of its economic model:

  • It ensures that Bitcoin's issuance speed remains highly predictable, avoiding the inflation risks brought by disorderly issuance.

  • This is also a key difference between cryptocurrencies and traditional fiat currencies — fiat currencies often have the possibility of unlimited issuance, while Bitcoin achieves a controllable inflation rate through halving, further reinforcing its scarcity value.

3. The History and Future of Bitcoin Halving

  • As of July 2019, Bitcoin has experienced two halving events in history: the first was on November 28, 2012, when the Bitcoin price was $12.31; the second occurred on July 9, 2016, when the Bitcoin price had risen to $650.63.

  • According to the established rules, Bitcoin will undergo a total of 32 halvings. When all halving events are completed, the halving mechanism will cease to operate, and the total Bitcoin supply will officially reach the cap of 21 million coins, after which no new Bitcoins will be mined.