Can the 21 Million Cap Change?
Why Bitcoin's supply limit is enforced by consensus—and what changing it would require.
Bitcoin Basics
How New Bitcoin Is Created
Mining, block rewards, and the schedule that reduces new supply over time.
Overview
New Bitcoin enters circulation as a reward to miners who secure the network. Roughly every ten minutes a block is found and the miner receives newly issued coins plus fees. This reward halves about every four years in an event called the halving.
Issuance is predictable and transparent—anyone can audit the schedule in the protocol. Over time, fees are expected to play a larger role in miner revenue as subsidies decline toward zero.
Mining and block rewards
Miners compete to find valid blocks by expending energy on proof-of-work. The first valid block each interval earns the subsidy plus transaction fees from included transfers.
Difficulty adjusts about every two weeks to target average ten-minute blocks. The system self-regulates to keep issuance on schedule over long horizons.
The halving schedule
Roughly every four years the block subsidy halves. Past halvings reduced new supply growth. The protocol schedule is known years in advance.
Eventually subsidies approach zero and fees must sustain miner incentives. That transition is gradual and visible on-chain.
Why issuance design matters
Predictable, diminishing issuance is central to Bitcoin's monetary story. Holders can audit total supply without trusting a central bank.
Whether that design justifies allocation is separate from understanding how it works. The mechanism is transparent; the investment thesis is personal.
