Bitcoin halving will cut annual inflation rate to half of world average
Analyst says the annual inflation rate of the cryptocurrency would fall from 3.65 per cent to 1.8 per cent after the halving on May 12
Cryptocurrency analyst Mati Greenspan has noted that the annual inflation rate of Bitcoin would fall from 3.65 per cent to 1.8 per cent once the halving happens on May 12.
That would amount to half the rate of inflation for the world average. By comparison, the world saw an inflation rate of 3.41 per cent in 2019 and is approximately 3.56 per cent so far for 2020.
As a result once the halving happens in two weeks, he predicts the cryptocurrency will have a rate both lower than the global average and that of gold, which is approximately 2.5 per cent at the time of press.
Bitcoin has been more closely correlated with the asset following the March 13 downturn.
If the world sees a surge in demand for Bitcoin with both a fixed supply of coins and low inflation rate following the halving, the asset might be looking more bullish in the near future.
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