The supply of bitcoin is driven by three unique factors

 

1. Scarcity

BTC’s supply is capped at 21 million, verified by participants running full nodes (i.e., the network of computers hosting Bitcoin).

2. Disinflation

The rate of expansion (inflation) of the BTC supply diminishes over time in regular intervals with predetermined subsidies to miners.

3. Consistency

Halvings cut the inflation rate of BTC and ensure that BTC’s supply cap will be reached in transparent and regular intervals over time.

 

Bitcoin halvings are scheduled events that cut the issuance of new bitcoin in half

 

1. Four-year periods (epochs)

They are scheduled to happen every 210,000 blocks2 starting from Bitcoin’s very first block. Given the network’s target block time of 10 minutes, the time between two consecutive halvings is roughly 4 years.

2. 50% reduction in mining subsidies (BTC issuance)

Halvings cut in half the issuance of new bitcoin subsidies to miners, reducing the token’s rate of supply growth and increasing the rarity of newly available bitcoin on the market.