In one case the Bitcoin rewards halving goes through on May 12, the annual inflation rate of the cryptocurrency will be nearly half of the global average.

As crypto analyst Mati Greenspan noted on Twitter on April 26, the annual inflation of Bitcoin (BTC) will fall from iii.65% at the time of printing to 1.8% one time the halving happens in 15 days. The global annual inflation rate for 2022 was iii.41%, and is approximately 3.56% so far for 2022.

Though many have pointed out a low inflation charge per unit would not necessarily cause new buyers to flock to BTC, the fact remains that once the halving happens in two weeks, the cryptocurrency will have a charge per unit both lower than the global average and that of gold — approximately two.5% at the fourth dimension of press. Bitcoin has been more closely correlated with the asset following the March 13 downturn.

Hedge confronting inflation

As Cointelegraph has reported, Bitcoin could exist used as a hedge against the type of inflation the United States might experience post-obit the "unlimited quantitative easing" measures implemented by the government in response to the financial crisis. It already is in countries similar Venezuela and Zimbabwe, whose economies are both experiencing hyperinflation.

If the globe sees a surge in demand for BTC — with both a stock-still supply of coins and low inflation rate post-obit the halving — the asset might be looking more than bullish in the near future.