- Bitcoin Inflation — 3.2%
Talking about Bitcoin Inflation Rate, we do not mean the purchasing power of money, but the average mined Bitcoins. There is a fixed amount of 21 million Bitcoin that can be minted, which implies that no coins can be produced once this point is reached. Approximately 80 percent of the total amount of Bitcoin has already been minted. Bitcoin’s algorithmic inflation rate since 2010 is displayed in the figure above and is explained in the original Bitcoin white paper. On July 9, 2010, Satoshi wrote: “When someone tries to buy all the world’s supply of a scarce asset, the more they buy the higher the price goes.”
In 2011, BTC’s inflation rate was between 30–50% and between 2011 and 2014 it dropped to 12%. After the halving in 2016, when the block reward was cut from 25 BTC to 12.5 BTC, the inflation rate kicked down to 5–4%. Today, throughout the month of February 2020, the BTC network’s inflation rate is between 3.59% and 3.86%.
- Inflation rate
Today, 2nd July, the inflation rate of Bitcoin is 3.2 %.
The difficulty re-adjustment makes it impossible to simply mine more Bitcoin by allocating more computer resources to the network. As more people try to mine Bitcoin, the software automatically increases the difficulty of successfully mining a Bitcoin and vice-a-versa.
Once the inflation rate reaches zero, miners will no longer be able to earn money from minting newly created bitcoins. Instead, transaction fees will have to increase or the number of transactions will have to increase.
As we’ve already mentioned Bitcoin Block Reward Halving Date approaches. According to the history prices and previous halving, we believe that after this date Bitcoin’s price will incredibly rise because the inflation rate will drop by half.
- Bitcoin Future on the Chicago Mercantile Exchange