April 26, 2024

After halving, bitcoin inflation will decrease to half the global average

After halving, bitcoin inflation will decrease to half the global average

Cryptanalyst Mati Greenspan noted that after the May Halving, Bitcoin's annual inflation rate will drop from 3.65% to 1.8%.

In 2019, the average annual inflation rate in the world was 3.41%, and for 2020 it is still about 3.56%.After miners' rewards are reduced from 12.5 to 6.75 BTC on May 12, bitcoin inflation will fallproportionally and will be only about half of the world average.

After halving, bitcoin inflation will decrease to half the global average

Although these changes do not guarantee an influx of investors or an increase in interest in the use of BTC to pay for goods, but afterHalving , the digital asset will surpass even gold with its current 2.5%.This will potentially allow it to be used as a hedging tool against the inflation risks of fiat currency.

However, in parallel with a reduction in inflation, the income of miners will also fall, which, without a significant increase in the MTC exchange rate, can lead to the disconnection of some of the ASICs.

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