How Does the Halving Schedule Ensure a Finite Supply of Bitcoin?

The halving schedule is a fixed, algorithmic reduction in the block reward, which is designed to progressively slow down the rate at which new Bitcoin is created. Since the reward halves every 210,000 blocks, the total number of Bitcoin that will ever be created is mathematically capped at just under 21 million.

This controlled, deflationary issuance mechanism ensures scarcity.