Sirwin
Sirwin

After halving, BTC annual inflation will be half the global average: Bitcoin growth is inevitable!

By World Crypto | World Crypto | 27 Apr 2020


One analyst noted that the fall in the annual BTC inflation rate from 3.65% to 1.8% after halving is an impressive indicator compared to the usual figures of the traditional economy.

833e049ec21defdc47618c4b5662ef9c5c597dea92eb79039b7cd47097705067.jpeg

So, after May 12, when the next halving from the Bitcoin network is expected, the level of annual cryptocurrency inflation will be half the world average.

This, in particular, on April 26, was mentioned by crypto analyst Mati Greenspan. He added that the global annual inflation rate in 2019 was 3.41%, and in 2020 this figure will increase to about 3.56%:

6b0b1513459e4abfc3edfc11fb4cb199ac34a8cdd659d2c3e36a381faa247b1c.jpeg

Based on these statistics, Greenspan made a very bullish forecast regarding the prospects for a leading cryptocurrency:


In just 15 days, BTC annual inflation will become only 1.8% instead of 3.65% ... that's about half the global annual inflation rate.

Thus, in order to maintain prices, the acceptance level may not even increase. Satoshi either knew what he was doing, or he was really lucky.

Although some market observers have noted that low inflation will not necessarily lead to buyers becoming more active in the BTC market, the fact remains: after halving occurs in two weeks, this indicator of Bitcoin will be much lower than the global average and even the gold indicator (approximately 2.5%).

Bitcoin as a tool to protect against inflation

Bitcoin can be used as a protection tool, or hedge asset, against inflation caused by the US decision to implement an “unlimited quantitative easing” program to deal with the effects of the economic crisis. In countries with a hyperinflationary economy, such as Venezuela and Zimbabwe, the leading cryptocurrency already plays this role.

If, with a fixed supply volume and low inflation, demand for BTC will increase after a halving, then the medium-term prospects of Bitcoin will become very bullish.

 

How do you rate this article?

14



World Crypto
World Crypto

Analytics, regulation, latest news and not only in the world of cryptocurrencies!

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.