Definition ∞ Bitcoin production supply refers to the rate at which new Bitcoin units are generated and introduced into circulation through the mining process. This supply schedule is predetermined by Bitcoin’s protocol, specifically through block rewards issued to miners for verifying transactions. The issuance rate halves approximately every four years, an event known as the halving, which systematically reduces the new supply. This controlled scarcity mechanism is a fundamental characteristic of Bitcoin’s economic design.
Context ∞ The Bitcoin production supply is a central topic in cryptocurrency news, particularly around halving events, as it directly impacts the asset’s scarcity and potential price dynamics. Changes in this supply rate are closely observed by market participants for their implications on Bitcoin’s supply-demand balance. The predictable and diminishing nature of new Bitcoin issuance is a key argument for its classification as a deflationary asset, distinguishing it from fiat currencies with discretionary supply. Understanding this fixed production schedule is essential for evaluating Bitcoin’s long-term value proposition.
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