What Is the Economic Purpose of the Bitcoin Halving Schedule?

The economic purpose of the Bitcoin halving schedule is to create a predictable and disinflationary monetary policy for the cryptocurrency. By systematically reducing the rate at which new bitcoins are created, the halving ensures that the total supply is capped at 21 million coins.

This controlled scarcity is designed to mimic the extraction of precious metals like gold, making Bitcoin a potentially effective store of value. The decreasing supply issuance can also lead to upward price pressure if demand remains constant or increases.