Understanding the Bitcoin HalvingBitcoin operates on a deflationary model, where the reward for mining new blocks is halved every 210,000 blocks, or approximately every four years, a process known as the "halving." This event is significant because it reduces the rate at which new bitcoin are generated, thereby limiting supply. Bitcoin is the only asset in human history to have a fixed supply that never increases, making it the hardest currency ever known.
This aspect of the protocol cannot be changed due to the decentralized distribution of nodes. For the supply limit of Bitcoin to be increased, the majority of nodes would have to agree to such a change. While this might be possibly in theory, it’s hard to imagine a scenario where it becomes reality. Thousands of independent node operators around the world would have to agree to making themselves poorer and reducing the value of Bitcoin as a whole.
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