After the recent “Halving” event, Bitcoin’s inflation rate has plummeted below that of gold, making it the scarcest asset in history.
Halving and Inflation Rate
Every four years, Bitcoin undergoes a “Halving” where the block rewards given to miners are cut in half. This event reduces the rate at which new Bitcoins are created, thereby lowering the inflation rate.
Bitcoin’s Inflation Rate
Before the latest Halving, Bitcoin’s annualized inflation rate was around 1.7%. After the event, it has dropped to a mere 0.85%.
Comparison to Gold
For the first time ever, Bitcoin’s inflation rate has become lower than gold’s, which is estimated to be around 2.3%. This marks a significant milestone in Bitcoin’s history, solidifying its position as the scarcest asset.
Bitcoin Price
Despite recent gains, Bitcoin’s price has dipped slightly in the past day, currently trading at around $64,700.
