As we approach the conclusion of the fourth epoch, the countdown to the next Bitcoin halving is firmly underway. The Halving is one of the most important and innovative features of Bitcoin. Every ten minutes, the Bitcoin network issues new bitcoin and approximately every four years (210,000 blocks to be precise) the amount issued (the “block subsidy”) is cut in half. The block subsidy is the reward miners receive for validating and recording new transactions on the blockchain.

1. On November 28, 2012, Bitcoin’s block subsidy decreased from 50 BTC per block to 25 BTC per block.

2. On July 9, 2016, the second Bitcoin Halving decreased the block subsidy from 25 BTC per block to 12.5 BTC per block.
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3. On May 20, 2020, the third Bitcoin Halving reduced the block subsidy from 12.5 BTC per block to 6.25 BTC per block.
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The halving of the block subsidy is a critical factor in Bitcoin’s eventual capped supply of 21 million bitcoins. Miners, however, don’t solely rely on the block subsidy; they also collect transaction fees that users attach to their transactions to encourage miners to include them in the next block. These transaction fees are in addition to the block subsidy, which means miners often earn more bitcoin for mining a block than just the block subsidy.