Analyst: Bitcoin inflation rate will be lower than most central banks after halving, and its price will easily rise to $200,000 in two years

After the Bitcoin halving event in May this year, its inflation rate will fall to 1.8% per year. This puts it well below most inflation targets of central banks.

Bitcoin (BTC) is often considered a hedge against inflation. This is because the total amount of BTC in circulation can never exceed its fixed supply. The inflation rate depends on the amount of BTC produced each year through mining.

As of now, Bitcoin's inflation rate is about 3.6%. However, after the halving, this rate will be halved, with significant consequences. Miners will earn only half of what they do now, so the inflation rate will drop to 1.8%. In comparison, most central banks have an inflation target of 2%.

The Moon (@TheMoonCarl) pointed this out recently on Twitter, where it gained a lot of attention.

“#Bitcoin inflation is now 3.6% and will be 1.8% after the halving. This is officially below the 2% inflation target set by most central banks. This is actually huge! The price of BTC can easily jump to $200,000 in 2 years!”

The focus of global inflation targeting is to achieve a 2% inflation target. This is also the goal of the Federal Reserve and most major central banks. Now, with Bitcoin’s latest halving, the leading cryptocurrency will finally be able to make a name for itself as having a lower inflation rate than most fiat-based systems.

Meanwhile, inflation appears to be rising around the world. Over the past few years, we have seen a sharp rise in inflation rates in many countries. Most recently, BeInCrypto noted in its December report that monetary inflation is rising in countries around the world. Are we entering another era of global inflation — and is Bitcoin the solution?

Bitcoin still has to prove itself as a store of value until it can be considered a stable alternative to fiat currencies. Right now, most anti-inflation advocates appear to be gold-lovers. However, the case for Bitcoin will continue to grow as we go through further halving cycles and inflation continues to fall. Every four years, Bitcoin will become more attractive as a hedge against inflation. This effectively means that Bitcoin is fundamentally a good long-term hold.