Bitcoin, like many other cryptocurrencies, has a limited and predetermined issuance. The total number of bitcoins that will ever exist is 21 million coins. This is a fundamental difference from traditional fiat currencies, which can be printed by governments without restrictions, potentially leading to inflation.
To ensure this limited issuance and control the release of new coins, Bitcoin's code includes a mechanism known as "halving." Approximately every four years (or after mining every 210,000 blocks), the reward that miners receive for successfully adding a new block to the blockchain is halved.
This mechanism simulates the scarcity of precious metals, such as gold, making Bitcoin a deflationary asset over time. The last halving occurred in April 2024, and this is an event closely watched by the entire crypto community, as it has a significant impact on the supply of new bitcoins and, consequently, on its price.
