## The Security Code of Decentralized Digital Assets: Understanding Bitcoin's Supply Mechanism

In the cryptocurrency ecosystem, supply management is a key factor in determining asset value. Bitcoin employs a preset mechanism called "halving" to ensure its digital currency's scarcity and long-term value stability. This mechanism automatically triggers approximately every four years, fundamentally changing the rate of new coin issuance.

## The Essence of the Halving Mechanism: Why Does It Happen

Whenever the block height reaches a specific number (every 210,000 blocks), the Bitcoin network automatically initiates the halving process. In simple terms, this means that the rewards miners receive for maintaining network security are cut in half. This is not a human decision but an economic rule pre-written into the Bitcoin code that cannot be changed.

What is the core goal of this design? Bitcoin's total supply is permanently capped at 21 million coins. The halving mechanism ensures that Bitcoin steadily approaches this cap, preventing inflation and maintaining its properties as digital gold. Each halving reinforces Bitcoin's scarcity promise, which is the fundamental reason it can retain its value.

## Review of Past Halving Events

In 2012, the first halving reduced the miner reward from 50 BTC to 25 BTC, marking Bitcoin's entry into a more scarce era.

The second halving in 2016 further cut the reward to 12.5 BTC.

The third halving in May 2020 cut the reward again to 6.25 BTC.

After these three events, the market generally observed a long-term upward trend in Bitcoin's price, leading many investors to anticipate the upcoming halving.

## The Upcoming Halving Milestone

The next halving is expected to occur around April 2024 (when the block height reaches 840,000). At that time, miners' unit rewards will decrease from 6.25 BTC to 3.125 BTC. This event will have a significant impact on market psychology and liquidity.

## How Halving Affects Your Bitcoin Assets

Direct impact: The amount of Bitcoin in your wallet remains unchanged. Halving only affects the rate of new coin issuance and does not arbitrarily change your existing holdings.

Indirect impact: This is the part that investors truly need to pay attention to. Halving alters the pace of new Bitcoin supply in the market, potentially increasing BTC's scarcity premium. Meanwhile, the reduction in miner income may influence their mining enthusiasm, which could have chain reactions on network security and transaction fees. Changes in market sentiment often have a greater influence on price direction than the mechanism itself.

## Moving Toward the Endgame: The Last Bitcoin

Based on current data, over 90% of Bitcoin has already been mined. According to the current halving cycle, the last Bitcoin is expected to be mined around the year 2140.

What does this mean? Bitcoin's entire lifecycle spans approximately 130 years, with each halving gradually approaching the supply cap. After the 32nd halving, no new Bitcoin will be created, and the entire system will shift to an economic model maintained solely by transaction fees. This is the first monetary asset in human history entirely defined by code, with an absolutely certain supply.