As Glassnode analysts pointed out, Bitcoin's fourth halving event has brought significant attention to its comparison with gold in terms of scarcity.
According to Glassnode, this event marked a historic moment in which the issuance rate of Bitcoin (BTC) fell below that of gold for the first time, highlighting a crucial shift in the narrative surrounding the two assets.
Saturday's halving event reportedly reduced block subsidies, with issuance dropping from 6.25 BTC to 3.125 BTC per block. This represents an issuance of around 450 Bitcoins per day, further highlighting the impact of the event on Bitcoin supply dynamics.
ARK Investment Management's Yassine Elmandjra expressed similar sentiments, noting that Bitcoin's post-halving issuance rate is now lower than gold's long-term supply growth.
Elmandjra's analysis, published in the ARK Disrupt newsletter, highlighted the significant decline in Bitcoin's supply growth post-halving, reinforcing the comparison with gold. Glassnode analysts continued to support Elmandjra’s observation regarding Bitcoin’s supply growth slowing.
Bitcoin’s issuance rate compared to Gold from Glassnode
They suggested that while halving events continue to impact Bitcoin's available trading supply, the impact may lessen over cycles due to the asset's growing size and ecosystem.
Reviews like these provide valuable insight into the evolving dynamics between Bitcoin and gold and shed light on Bitcoin's increasing scarcity compared to the traditional precious metal.
Today, the price of Bitcoin is down 2.5%, falling just below $65,000 at the time of writing.
24-hour chart of BTC from TradingView
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.