Bitcoin's 2024 Supply Slowdown Could Make It More Stable Than Gold
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Bitcoin's upcoming "halving" event in 2024 will cut its supply growth rate to under 1% per year, below gold's rate of supply growth. This could redefine Bitcoin as a better store of value than gold.
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Bitcoin's limited total supply and predictable "halvings" lead to higher prices over time, as long as demand remains steady. The 2024 event could trigger dramatic price increases like previous halvings.
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Once the last Bitcoin is mined around 2140, rewards will only come from transaction fees. The system depends on adequate mining rewards, so prices must rise after halvings to sustain mining.
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Bitcoin has faced challenges before and the community has overcome them. As long as demand rises to match the ever-slowing supply growth, Bitcoin's programmed stability should preserve value over the very long term.
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Bitcoin's ambitious goal of replacing gold may work out since the 2024 halving brings stability on par with or better than gold. The author suggests a modest Bitcoin investment.