Welcome to the Crypto Crow Global Economic Update!
Today we are talking about the BTC halving and its effect on the hashrate, the Fed’s decision to scrap inflation targets, and the global economic outlook.
The Bitcoin halving is a pre-programmed event that takes place every four years and halves the block reward miners receive for mining new bitcoin. This reduces the amount of new bitcoin entering circulation, and can have a dramatic effect on the hashrate of the network.
The hashrate is the amount of computing power being used to mine new blocks of Bitcoin. As the hashrate increases, the difficulty of mining new blocks increases proportionally, making it more difficult and expensive to mine Bitcoin. This is one of the reasons why Bitcoin prices tend to increase in the months leading up to a halving.
The US Federal Reserve recently announced that it would no longer target a specific inflation rate. This was seen as a major shift in the Fed’s policy and could have implications for the global economy. The Fed’s decision may be a sign that they are expecting inflation to remain low or even decline in the near future.
The global economic outlook remains uncertain. The US and China have yet to reach a new trade deal, and the US economy is still struggling with the effects of the coronavirus pandemic. Additionally, the global economy is facing a number of geopolitical risks, particularly in the Middle East and Europe.
It remains to be seen how the global economy will fare in the coming months and years, but it is clear that the halving of Bitcoin and the Fed’s decision to scrap inflation targets could have significant implications for the global economy.
