Definition
An event that occurs roughly every four years, cutting the Bitcoin block reward in half. This reduces the rate at which new Bitcoin is created, reinforcing scarcity.
Related Terms
Full Node
A computer that runs the Bitcoin software and maintains a complete copy of the blockchain. Nodes independently verify all transactions and blocks.
Hardware Wallet
A physical device designed to securely store Bitcoin private keys offline. Popular options include Trezor, Ledger, Coldcard, and Bitkey.
Fiat Currency
Government-issued currency that is not backed by a physical commodity (e.g., US Dollar, Euro). Bitcoin is often compared to fiat as an alternative monetary system.
Hash Rate
The total computational power being used to mine and process Bitcoin transactions. A higher hash rate means greater network security.
Fee
A small payment included with a Bitcoin transaction to incentivize miners to include it in a block. Fees vary based on network demand and transaction size.