According to a report by cryptocurrency data analysis firm Glassnode, the annual inflation rate of Bitcoin after the halving is significantly lower than that of gold. The fourth halving of Bitcoin was completed on May 20th, reducing the block reward from 6.25 BTC to 3.125 BTC. Glassnode’s report indicates that Bitcoin’s annual inflation rate after the halving has significantly dropped compared to gold. Bitcoin’s inflation rate has dropped to 0.85%, much lower than gold’s 2.3%. The average block interval on the Bitcoin network remains around 10 minutes, and the block reward is also distributed every 10 minutes. Before the fourth halving, approximately 900 Bitcoins were generated daily, resulting in an annual inflation rate of about 1.7%. After the halving event, approximately 450 Bitcoins are generated daily, lowering the annual inflation rate to about 0.85%. This value is significantly lower than gold’s 2.3% annual inflation rate.
Furthermore, many believe that Bitcoin’s divisibility and portability are unmatched by other precious metals. Combined with Bitcoin’s significantly lower inflation rate compared to gold after the fourth halving, it highlights its position as the scarcest asset and further strengthens its influence as “digital gold.”
Glassnode analyst: Halving event is just a narrative game and not important. However, some analysts believe that the impact of the halving event on Bitcoin’s trading volume is not significant. Glassnode’s report states, “While the halving event is important to the narrative, it does not have a significant effect on Bitcoin trading volume.” Glassnode’s Chief Analyst, James Check, also tweeted on the matter, stating, “Of course, not every analyst holds the same view. After all, the reduction in new BTC production is a clear fact, and with the launch of ETFs and the adoption by more financial institutions, more and more people around the world are likely to start recognizing this asset, and the halving narrative is likely to play a key role in their investment decisions.”
On another note, ViaBTC recently auctioned off the first “epic Satoshi” after the fourth Bitcoin halving, and the current price has soared to 5.5 BTC ($353,394), an increase of 550 million times. However, before Ordinals’ development, we did not have the concept of grading Satoshi, and this artificial difference may be one of the “narrative games” mentioned by James Check.
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Gold-backed stablecoin PAXG surges 40% in a single day! The value of Bitcoin as a geopolitical hedge is “hard to compare to real gold.”