RE: Cryptocurrency: Why Do We Like To Burn Money?
You are viewing a single comment's thread:
Great post, I find that inflation is actually misleading( but recognise it's the generally accepted term) when you think about what it means in the real world, which is the price of goods that can be purchased going up. This means in reality most crypto currencies including ETH are deflationary because over time you can purchase more goods and services with them.
I guess the closest fiat world equivalent of crypto inflation is money supply. ETH as you mentioned is increasing the money supply by 18% a year, that's ok if as you mentioned there is growth. In this case growth is transaction volume growth, and general userbase growth.
High "inflation rates" are fine at the moment as crypto is pulling in more and more people everyday, once the userbase growth stalls, inflation then needs to be reduced otherwise the price may drop.
I don't know about you, but I can't see the growth in adoption slowing down in the foreseeable future so this problem is only a medium to long term issue at which point most crypto would have naturally reduced inflation.
Posted Using LeoFinance Beta
Overall, I agree. The total growth will continue. As for different projects, that is a separate matter. Many are not developing, growing or expanding. In my opinion, they are bound to die off.
When project/community teams start to focus upon this, then we will see something completely different. It is one area where the VC backed projects have an advantage. Those people are forced to think about a growth strategy.
Posted Using LeoFinance Beta