Bitcoin to Become Rarer than Gold After Halving: Quality Money

With the upcoming Bitcoin halving, gold’s status as a store of value is being challenged. For the first time, Bitcoin’s annual inflation rate is set to be lower than that of gold. At block height 840,000, Bitcoin’s annual supply will be halved, reducing its inflation rate from 1.7% to 0.85%. In comparison, gold’s supply is expected to increase by 1-2% annually.

Bitcoin has undergone three halving events in its history:
1. November 28, 2012: From 50 BTC to 25 BTC per block
2. July 9, 2016: From 25 BTC to 12.5 BTC per block
3. May 20, 2020: From 12.5 BTC to 6.25 BTC per block
The fourth halving is predicted to occur on April 20, 2024, reducing the block subsidy to 3.125 BTC. This will lead to a total supply of 20,671,875 BTC, close to the maximum supply limit of 21 million.

Gold has historically been seen as a store of value, with its value often compared to that of a fine man’s suit. However, challenges such as verification costs, transportation difficulties, and risks associated with physical ownership have plagued the precious metal. Bitcoin, on the other hand, has transitioned from a speculative asset to a recognized store of value, offering digital scarcity and improved monetary attributes.

Bitcoin’s scarcity, durability, and immutability make it a superior store of value compared to gold. As Bitcoin’s market cap continues to grow, it presents a compelling alternative to traditional precious metals. The upcoming halving event is expected to further solidify Bitcoin’s position as a safe haven asset.

Gold may have had its time, but with Bitcoin’s emergence as a digital store of value, the spotlight is now on the leading cryptocurrency.

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