Quality Money: Bitcoin to Become Scarcer than Gold Post-Halving

For the first time, the new supply of bitcoin entering the market is set to surpass gold after the 2024 Bitcoin halving. The sixth installment of “10 Steps to Self-Sovereignty” powered by Ledger.

Apr 11, 2024 - 23:50

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Quality Money: Bitcoin to Become Scarcer than Gold Post-Halving

The Bitcoin Halving: Gold is on Borrowed Time

For the first time since its inception, Bitcoin’s annual inflation rate is poised to become less than that of gold, the quintessential store of value. At Bitcoin block height 840,000, the annual supply of Bitcoin will be cut in half, resulting in a decrease in its annual inflation rate from 1.7% to 0.85%. In comparison, the supply of gold is estimated to increase by 1-2% per year, depending on technological changes and economic conditions.

To date, Bitcoin has experienced three halving events:

November 28, 2012: Bitcoin’s block subsidy decreased from 50 BTC per block to 25 BTC per block.

July 9, 2016: The second Bitcoin halving decreased the block subsidy from 25 BTC per block to 12.5 BTC per block.

May 20, 2020: The third Bitcoin halving reduced the block subsidy from 12.5 BTC per block to 6.25 BTC per block.

The upcoming fourth Bitcoin halving is projected to occur on April 20, 2024 EDT, and with it, the newly supplied bitcoin per block will decrease from 6.25 to 3.125 BTC. This epoch — a period of 210,000 blocks or approximately 4 years – will see Bitcoin’s supply increase by 164,250 BTC (from 19,687,500 to 20,671,875), a mere 328,124 bitcoin from the maximum supply limit of 21 million.