Bitcoin inflation will drop to half the world average after halving
Bitcoin Halving Explained Simple – Does it Affect Bitcoin’s Price?
Crypto analyst Mati Greenspan noted that Bitcoin’s annual inflation rate will drop from 3.65% to 1.8% after the May halving.
IN 2019 year the average annual inflation rate in the world was 3.41%, and for 2020 is he so far it is about 3.56%. After the miners’ remuneration is reduced from 12.5 to 6.75 BTC on May 12, Bitcoin inflation will fall proportionally and will be only about half of the global average..
Although these changes do not guarantee an influx of investors or an increase in interest in using MTC to pay for goods, after the halving digital asset will surpass even gold with its current 2.5% on this indicator. Potentially it will allow use it as a hedging instrument against inflationary risks of fiat currency.
However, in parallel with the reduction in inflation, the income of miners will also fall, which without a significant raising the rate VTS can lead to the shutdown of some ASICs.
text: Ivan Malichenko, photo: 1zoom, graphic: Mati Greenspan / Twitter