Bitcoin’s inflation now more than 3x lower than US dollar’s

As the demand for Bitcoin continues to grow, so does its price. This results in inflation of the currency.

Inflation is a rate by which the value of a currency falls in relation to other currencies. Inflation in Bitcoin is much higher than in USD because there is a limited supply of Bitcoins and its demand keeps on growing.

Bitcoin’s position in the financial markets has shifted between a store of value and hedge of inflation, but the asset’s deflationary status is coming into play compared to the United States dollar. With 90% of existing Bitcoin already in supply, the cryptocurrency’s inflation has hit a new low of 1.8%. 

Elsewhere, U.S. inflation has continued to skyrocket, hitting 6.8% in 2021, the highest value since 1982. Therefore, when compared, Bitcoin stands out as a clear winner with about 3.7 times lower inflation rate, according to the latest data provided by CoinMetrics.

Bitcoin’s inflation

Source: Bitcoin’s inflation is now more than 3x lower than the U.S. dollar’s (finbold.com)

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