The Halving: Why It Matters for Miners

Every 210,000 blocks, or roughly every four years, the Bitcoin network undergoes a "halving." This event cuts the block subsidy—the new Bitcoin issued to miners for securing the network—in half. It is a core component of Bitcoin's monetary policy, ensuring that the total supply never exceeds 21 million.

Supply Shock

The halving creates a supply shock. If demand remains constant or increases while the new supply is cut in half, basic economic principles suggest the price should rise. This has historically kicked off bull markets.

Miner Profitability

For miners, the halving is a double-edged sword. Their revenue (in BTC terms) is instantly cut in half. This forces inefficient miners to capitulate, leaving only the most efficient operations to secure the network. It drives innovation in hardware efficiency and energy sourcing.