Report Reveals: Bitcoin's Inflation Rate Surpasses Gold, Unveiling a New Financial Era

Since Bitcoin's fourth halving event occurred approximately four days ago, analysts have begun to assess its impact on the market, particularly regarding the cryptocurrency's supply inflation rate.

Bitcoin Halving: Reducing Supply Inflation and Historic Milestones

Following the halving, Bitcoin's supply inflation rate has significantly decreased, as anticipated. The issuance of new BTC per block has been halved to 3.125 BTC from the previous 6.25 BTC, resulting in a daily production of approximately 450 BTC and an annual inflation rate of 0.85%. Notably, this inflation rate now stands below that of gold, which is historically significant, as Bitcoin is often compared to the precious metal.

Bitcoin's Value Proposition: Digital Scarcity and Store of Value Superiority

Bitcoin proponents argue that its digital nature, combined with its limited supply, positions it as a superior store of value compared to traditional assets like gold. The halving further limits Bitcoin's supply issuance, potentially enhancing its value preservation capabilities over time.

Halving Realities: Analyzing Bitcoin's Price Dynamics Amidst Supply Reductions

However, some analysts contend that the halving's impact on Bitcoin's price movements may be negligible. They argue that the reduction in supply issuance constitutes only a fraction of the overall capital flow in the Bitcoin market. Despite this, Bitcoin's price managed to reach a new all-time high before the conclusion of the fourth halving epoch, partly attributed to the launch of U.S. Bitcoin spot ETFs and endorsements from prominent figures like BlackRock's Larry Fink.

Diminishing Returns: Bitcoin's Price Dynamics Across Halving Events

Comparing price gains between halving events, Bitcoin's returns in the fourth epoch were lower than in the previous one, suggesting diminishing returns with each halving. This trend is attributed to the growing market size and the increasing capital required to drive significant price movements.

Resilience Amidst Halving: Bitcoin Hash Rate and Miner Revenues Surge

Despite the halving's impact on miner revenues, the Bitcoin network's hash rate remains near all-time highs, indicating the mining industry's resilience. Miner revenues even surged after the halving, supported by increased transaction fees driven by the launch of the Bitcoin token protocol "Runes."

In summary, while the halving event has resulted in a significant decline in Bitcoin's supply inflation rate, its impact on price movements and the mining industry remains subject to ongoing analysis and interpretation.