Popular crypto analyst Mati Greenspan has reported through his official Twitter account the annual inflation rate of the largest crypto in the market will fall by half after the crypto's halving scheduled for May 12.
According to him, the inflation rate will go from the current 3.65% to 1.8% within two weeks. This is a significant drop, since this indicator stood at 3.41% in 2019.
Even though some experts believe this sharp drop in the inflation rate will not necessarily attract new investors, the annual inflation rate of Bitcoin will actually be lower than both the world average and the gold rate, which is currently 2.5%.
Due to the current economic situation in many countries, as well as the crisis that will likely affect almost all countries in the world as a result of the coronavirus pandemic, Bitcoin could act as a hedge against inflation. This is not surprising, as in fact this asset already acts as such in countries such as Venezuela or Zimbabwe, which are affected by a really high inflation.
For this reason, Bitcoin demand could soar in the near future, which would in turn boost the crypto's price.
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