According to a report by cryptocurrency data analysis company Glassnode, Bitcoin’s annual inflation rate after the halving is significantly lower than gold’s annual inflation rate.
(Recap:Bitcoin’s $65,000 “calm shock” after the halving. What major economic events should we pay attention to this week? )
(Background supplement:How does Coinbase analyze the outlook for Bitcoin’s halving?What changes will the global economy bring? )
CompareBitcoin’s fourth halving was completed on the 20th of this month, and the block reward dropped from 6.25 BTC to 3.125 BTC. According to a report by cryptocurrency data analysis company Glassnode, Bitcoin’s annual inflation rate after the halving has been significantly lower than gold.
Bitcoin inflation rate dropped to 0.85%, much lower than gold’s 2.3%
The average block interval on the Bitcoin network remains at about 10 minutes, and block rewards are also issued every 10 minutes. It can be seen from this that before the fourth halving, 900 Bitcoins can be generated every day, and the annual inflation rate is about 1.7%. After the halving event, 450 Bitcoins can be generated every day, and the annual inflation rate has dropped. To about 0.85%, this value is significantly lower than gold’s 2.3% annual inflation rate.
In addition, many people believe that the divisibility and portability of Bitcoin are unmatched by other precious metals. In addition, Bitcoin’s inflation rate after the fourth halving is significantly lower than gold, which highlights its status as the scarcest asset and further strengthens its influence as “digital gold.”
Glassnode analyst: The halving event is just a narrative game and not important
However, some analysts believe that the impact of the halving event on Bitcoin transaction volume is not significant. Glassnode’s report writes:
Issuance volume represents only a small fraction of the on-chain transfer, spot and derivative volume we see today, equivalent to less than 0.1% of the total capital transferred and traded on any given day.
As a result, the impact of the Bitcoin halving on the available transaction supply diminishes across cycles, not only because of the reduction in the number of Bitcoins mined, but also due to the expansion of the assets and ecosystem surrounding it.
At the same time, James Check, chief analyst of Glassnode, tweeted on the X platform:
Bitcoin halving is just a “narrative game”, it really doesn’t matter
But of course, not every analyst has the same view. After all, it is a clear fact that the output of new BTC is reduced. With the launch of ETFs and the adoption of more financial institutions, more and more people around the world will surely begin to understand this asset, and the halving narrative will still have an impact on their investment decisions. will play a key role.
It is also worth mentioning that ViaBTC has only recently auctioned the first “Epic Satoshi” after Bitcoin’s fourth halving, and the current price is 5.5 BTC ($353,394), an increase of up to 550 million times. However, before the development of Ordinals, we did not have the concept of grading intelligence, and this artificial difference may be one of the “narrative games” mentioned by James Check.
