Next year's Bitcoin halving will push inflation rates down to 1.8%

With less than 313 days to go until the next Bitcoin halving, traders and investors are expecting a "Supply shock" as the network's supply of coins reduces in half.

Next May's halving will not only cut the inflation rate down to 1.8 percent but also skyrocket the global demand for Bitcoin.

While many believe a rally was inevitable, others believe Bitcoin's rise has been fueled by FOMO. In May 2020, the Bitcoin network is expected to halve, which means that the rewards for bitcoin miners will reduce by half.

Traders have already started getting antsy about the event and the anticipation of a huge spike in price has already started to push Bitcoin's price upwards.

Bitcoin's inflation rate to rival that of central banks.

Another major side effect of the halving is the reduction of Bitcoin's consumer price inflation rate.

The 1.8 percent inflation rate will not only be lower than the 2 percent inflation target set by central banks, but it will also rival gold's supply rate yearly increase.

Bitcoin's inflation rate will be cut to 1.8%. Why is that important?

Unlike most fiat currencies, whose inflation rates are very fragile and set yearly, Bitcoin's own inflation rate will remain unchanged for the next four years, giving people a sense of stability they couldn't count on in traditional financial systems.

As more and more people put their money into Bitcoin, it could become the main store of value against inflation in the next couple of years.