Bitcoin MONEY SUpply

Bitcoin’s money supply is strictly defined, transparent, and immutable. The protocol enforces an absolute cap of 21 million bitcoins, a rule that cannot be altered without global consensus, which in practice makes it unchangeable. New bitcoins are introduced into circulation through mining as a reward for securing the network, and this issuance follows a precise schedule written into the code.

 

Approximately every 210,000 blocks, or about every four years, the block subsidy is cut in half in an event known as the halving. Bitcoin started with a reward of 50 BTC per block, then dropped to 25, 12.5, 6.25, and most recently 3.125 BTC. This process continues until new issuance effectively reaches zero around the year 2140, after which miners will be compensated entirely by transaction fees.

 

This declining issuance creates a disinflationary monetary system, where the rate of new supply decreases over time and eventually stops. Unlike fiat currencies, where supply can be expanded at will, Bitcoin’s supply growth is predictable decades in advance and verifiable by anyone running a node. This certainty removes monetary policy risk, protects purchasing power over the long term, and makes Bitcoin the first form of money with enforced digital scarcity.