Glossary

Bitcoin Halving

A programmatic event occurring approximately every four years that cuts the Bitcoin mining reward in half, reducing new BTC supply.

What is Bitcoin Halving?

A programmatic event occurring approximately every four years that cuts the Bitcoin mining reward in half, reducing new BTC supply. Bitcoin's supply schedule makes a strong case for borrowing against BTC rather than selling. If you believe halvings contribute to long-term price appreciation, selling Bitcoin for liquidity means giving up future upside. A Lygos loan lets you access cash today while maintaining your position through the current halving cycle and beyond.

Full Definition

The Bitcoin halving is a pre-programmed event that reduces the block mining reward by 50% approximately every 210,000 blocks (~4 years). This mechanism controls Bitcoin's supply inflation rate, gradually reducing it toward zero (the total supply is capped at 21 million BTC). Halvings have historically preceded significant price appreciation: the 2012 halving preceded the 2013 bull run, the 2016 halving preceded the 2017 cycle, and the 2020 halving preceded the 2021 cycle. The most recent halving occurred in April 2024, reducing the block reward from 6.25 to 3.125 BTC. For Bitcoin holders, halvings reinforce the thesis for long-term holding.

How Lygos Uses This

Bitcoin's supply schedule makes a strong case for borrowing against BTC rather than selling. If you believe halvings contribute to long-term price appreciation, selling Bitcoin for liquidity means giving up future upside. A Lygos loan lets you access cash today while maintaining your position through the current halving cycle and beyond.

Why this matters for borrowers

Understanding Bitcoin Halving helps you evaluate how different platforms handle your Bitcoin. Not all custody models are equal, and the technical details determine whether your BTC is truly safe.

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