Understanding the Bitcoin Halving

Abstract

Bitcoin's growth rate is about to half. Once every 210,000 blocks - that is approximately every 4 years - the rate at which new Bitcoin units are issued is cut in half. From block 0 to block 209,999, each block brought 50 new Bitcoin units into circulation. Between blocks 210,000 and 419,999, the reward was 25 Bitcoin units. Currently, the amount is 12.5 Bitcoin units. In less than a month, most likely on May 12th, the block reward will decrease once again to 6.25. In this article we take a closer look at the Bitcoin halving and tackle some common misconceptions surrounding this event.