On May 29th, it was reported that the Bitcoin inflation rate, following its halving, is now 75% lower than the current inflation rate in the United States and 72% lower than the annual issuance of gold. The reduction in block rewards from 6.25 bitcoins to 3.125 bitcoins, which occurred after the halving in April, has had a significant impact on the cryptocurrency’s issuance rate. Each halving event serves to decrease the supply of new bitcoins, tightening the market supply and potentially increasing the value of the asset over time. Currently, approximately 450 bitcoins are mined each day, resulting in a Bitcoin inflation rate of around 0.84%. In contrast, the latest inflation data for the United States in May stands at 3.4%. The decrease in Bitcoin’s inflation rate marks an important milestone, as it is now even lower than the minimum annual inflation rate for gold, which ranges between 1% and 3%. The issuance of gold through mining leads to a 1% increase in supply, and recycled gold is also included in its inflation rate, resulting in a projected inflation rate of 9% in 2023, causing a net increase of 3% in the circulating supply of gold.
