Bitcoin Supply Inflation VS M2 Money Supply InflationOver the last few months, inflation has been a hot topic.
As a result, I thought it would be great to emphasise the most important aspect of Bitcoin's monetary policy: scarcity.
For the first time ever, we can precisely see the maximum supply of a asset than can perform as our global reserve currency.
Given the halving event that occurs every four years (210,000 blocks), the inflation rate of Bitcoin's supply is steadily approaching zero. This is evidently shown via Glassnode''s data for Bitcoin Supply GLASSNODE:BTC_SUPPLY . After the third halving event, Bitcoin's inflation rate was approximately 1.8%
In recent years, Bitcoin has a lower inflation rate when compared to the current inflation rate of the M2 money stock.
Over the long term, this is extremely bullish.
We can expect more capital to be injected into Bitcoin and the rest of the cryptocurrency market as adoption continues.
Trader Dončić
