CNBC Declares Bitcoin as the First Asset Outpacing Gold in Scarcity

• Bitcoin's Potential to Surpass Gold in Scarcity According to CNBC
• Bitcoin Set to Become More Scarce than Gold
• The Bitcoin Halving Event

Bitcoin's Potential to Surpass Gold in Scarcity According to CNBC

CNBC has recently highlighted the potential for Bitcoin$42,260 -0.64% (BTC) to make history as the first asset to be "more scarce than gold. This follows a period of notable upswing for the renowned digital currency, with Bitcoin breaching the $42,000 mark for the first time in over a year. Many are projecting this growth trend to continue. CNBC's speculation revolves around the impending halving event, suggesting that it will result in the "stock to flow ratio" being affected-meaning Bitcoin will be mined less frequently than gold on a relative basis.

Bitcoin Set to Become More Scarce than Gold

Throughout this year, Bitcoin has been on a major comeback trail, with the price significantly influenced by speculation surrounding the potential approval of a Spot Bitcoin ETF. Furthermore, the much-anticipated asset-halving event is believed to be another key driver of this upward trend, expected to bestow upon Bitcoin the title of one of the scarcest assets available on the market.

As per CNBC, the forthcoming halving event is setting up Bitcoin to be the premier asset in history to be "more scarce than gold." This is in relation to the expected decrease in Bitcoin mining compared to gold on a relative basis, which is likely to provide an additional boost to Bitcoin's value.

The Bitcoin Halving Event

The Bitcoin halving event is marked by a 50% reduction in mining rewards for the digital asset. This significant change has a considerable influence on the overall price of the digital currency. With this event, Bitcoin's rarity is set to eclipse that of gold, a commodity famously valued for its scarcity.

Typically, the asset's best price performance follows its halving. Combined with the potential approval of a Spot Bitcoin ETF, this could create ideal conditions for a significant surge in Bitcoin's value. Taking these factors into account, Standard Chartered anticipates a $100,000 price tag for Bitcoin by the conclusion of 2024.

Edited by Jonathan Stoker