- The analysis by Glassnode underscores the significance of Bitcoin’s fourth halving event, which has led to a milestone moment where Bitcoin’s issuance rate has dropped below that of gold.
- This shift highlights Bitcoin’s evolving role as a scarce asset, positioning it as a potential alternative to traditional store-of-value assets like gold.
Bitcoin’s recent fourth halving event has triggered a significant milestone, with analyst firm Glassnode suggesting that the digital currency has now surpassed gold in terms of issuance scarcity.
During the event, which occurred last Saturday, the block subsidy for Bitcoin decreased from 6.25 BTC to 3.125 BTC per block. This reduction translates to an issuance of approximately 450 bitcoins per day, marking a noteworthy shift in Bitcoin’s issuance dynamics.
According to Glassnode analysts, this fourth halving event signifies a historic moment as Bitcoin’s steady-state issuance rate of 0.83% has now fallen below that of gold, which stands at around 2.3%. This transition marks a pivotal handover in the title of the scarcest asset, highlighting Bitcoin’s growing prominence in the realm of scarce resources.
The observations made by Glassnode were echoed by Yassine Elmandjra, an analyst at Ark Investment Management, who noted in the latest Ark Disrupt newsletter that Bitcoin’s issuance rate has dipped below that of gold’s long-term supply growth. Elmandjra emphasized that despite variations in the exact figures, gold’s annual issuance rate remains significantly higher than the post-halving annual supply growth of Bitcoin from block rewards.
However, Glassnode analysts cautioned that while Bitcoin halving events traditionally result in a reduction in mined coins, the impact on the available traded BTC supply may be diminishing across cycles. This phenomenon is attributed not only to the decrease in newly minted coins but also to the expansion of the asset’s size and ecosystem.
In the aftermath of the halving event, Bitcoin’s price has remained robust, maintaining a position above the $66,000 mark over the past 24 hours. Meanwhile, Ether has demonstrated even stronger performance, with a notable 2% increase, reaching $3,268 during the same period.
Overall, the cryptocurrency market has experienced moderate gains, with the total market cap rising by 1% to $2.59 trillion. The GM 30 Index, representing a curated selection of the top 30 cryptocurrencies, also saw a positive trend, recording a 0.97% increase to reach 138.48 within the past 24 hours.
Bitcoin’s Supply Scarcity Surpasses Gold Following Halving
Bitcoin’s recent halving event has propelled the digital currency into a new realm of scarcity, surpassing gold in terms of issuance scarcity. Glassnode’s analysis highlights this significant milestone, indicating Bitcoin’s growing prominence as a store of value. As the cryptocurrency market continues to evolve, this achievement underscores Bitcoin’s position as a leading asset with enduring value.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
