When you hear Bitcoin subsidy, the reward miners receive for adding new blocks to the Bitcoin blockchain. Also known as the block reward, it’s the only way new Bitcoin enters circulation—and it’s designed to shrink over time. This isn’t just a payment—it’s the engine that keeps Bitcoin running. Without it, miners wouldn’t spend billions on hardware and electricity to secure the network. The subsidy turns competition into trust: the more miners compete, the harder it is for anyone to cheat the system.
The Bitcoin subsidy started at 50 BTC per block in 2009. It cuts in half roughly every four years—this is called the halving, the scheduled reduction of Bitcoin’s block reward. The last one happened in April 2024, dropping the reward to 3.125 BTC. Before that, it was 6.25 BTC, then 12.5, then 25. Each halving makes Bitcoin scarcer by design, and history shows it often triggers price shifts. But the real impact isn’t just on price—it’s on who can still mine profitably. Smaller miners with old gear often get squeezed out. Only those with cheap power and efficient hardware survive.
The subsidy isn’t the whole story. Miners also earn transaction fees, small payments users add to their Bitcoin transactions to get faster confirmation. Right now, fees make up less than 10% of miner income. But as the subsidy keeps shrinking—next halving in 2028 will drop it to 1.56 BTC—fees will need to carry more weight. That’s why Bitcoin’s scalability and fee market matter so much. If fees stay too low, miners might walk away, weakening security. If they get too high, users abandon Bitcoin. The system has to balance both.
That’s why the Bitcoin subsidy is more than a technical detail—it’s the core incentive structure of the entire network. It’s why miners in Iran, Kazakhstan, and Texas risk blackouts, regulations, and volatile prices. It’s why Bitcoin stays decentralized even as big players enter the space. And it’s why every halving feels like a milestone, not just a number.
In the posts below, you’ll find real-world examples of how the subsidy shapes mining behavior, affects crypto economies under sanctions, and influences what happens when rewards drop. You’ll see how miners adapt, how countries respond, and why the subsidy remains the heartbeat of Bitcoin’s survival.
The Bitcoin block reward is the incentive miners receive for securing the network, made up of newly minted Bitcoin and transaction fees. It halves every four years, creating scarcity and shaping Bitcoin's value. As subsidies shrink, fees will become critical.