Bitcoin Forum

As you all know. now more and more crypto projects are born. So does crypto have inflation and lose its original value?

Inflation is a real thing. When there's more supply than demand, the price of the coin would naturally decrease.
We have seen this happen with many coins and tokens where issuing a large number of coins decreased the overall price of the coin. But whether the increasing number of crypto currencies hurt the overall price growth of other coins is still a debatable matter.

Inflation in crypto should be considered in two components, at least. The first one is inflation of each crypto currency. The coin has higher inflation rate will mostly has lower price. In its short period after beginning, its price might be high but when FOMOs goes away, price become stable and from which its price will stay at low range for sure. The second one is inflation of crypto market in aspect of total crypto currencies available on market. There are new coins launched nearly every day. Together, they contribute to create a abundant crypto currency market. Unfortunately, most of shit coins die after 6 months, one or two years. Such shit coins should be warned at starts to avoid lost in capital and believes of crypto investors.

The unpopular ones are prone to inflation.
But if you have read some articles about bitcoins deflation.
It's likely the best coin to invest to avoid inflation.

I believe the addition of new coins somewhat dilutes the value of the already existing ones, because a finite amount of money is chasing the entire market. So while the tendency is for the money to go to the better projects in the long run, there is some dilution of value while the market is saturated with coins. I expect over time the market will correct this.

If the coin supply is to high or infinite then there inflation will affect the coin if there is no demand for that coin, but for bitcoin as every 4 years is halving and total supply will be 21 million and demand is high inflation is low and not affect the price.

It doesn't because when there was a newborn to the world and there must be another old one that died too. CMC is too lazy to update about the real working platforms and delisting a died one. It's still having its original value and that's the point.

many projects die, many fraud projects .. will reduce interest in investors. The big floor also lots of junk ico that they do not remove.

The current world was update continuously so worst project are continuously die in this world. But If we think our own we must choose the best activite coin because money is the only problem for many countries. Bitcoin is the king so it will never die at the same time some huge projects are continuously maintain the same range. If we analyse the normal coin surely life style is little hard to survey so Inflation does not matter in cryptocurrency.

Of course it does. Where do you think newly mined/staked (minted) coins go? The new coin creation is the inflation. The only difference with traditional currencies is that the rate of inflation is already known from the beginning of the network.

It should create a high inflation since people can easily create their own money. But, crypto industry will face higher competition which will eliminate weak project from this space and replaced by other project. This is going to be so long until there is just few projects left or maybe just Bitcoin.

Maybe the inflation happens when the price is down like today.
We see that in 2017, the price can reach the highest price but today, the price gets down. So in my opinion, that is what inflation in the cryptocurrency.
The value of the altcoin is down following the bitcoin price. But it will increase soon once bitcoin can reach the new highest price.

The first question you should ask is what is inflation, when you know the definition of inflation,  then you would be able to know if really Crypto can be inflated, well inflation just simple means that there is more supply than demand, and of course a lot of coins could be inflated due to the large supply available, but bitcoin cannot be affected by inflation because we have only 21 million in existence of which haven't been mined yet, and with the demand we see for bitcoin everyday,  it is never possible that there could be inflation, but other crypto could face inflation.

For now cryptocurrency does not suffer from inflation may be due to the fact that it is not a normal traditional money and it is decentralized in the sense that it is not run by any government but may be in the future there would be more intervention from outside bodies

I think yes crypto is suffering from inflation right now. You see the bitcoin's price now? Even we say that bitcoin is already rising we did not please people to invest in crypto. We can't deny that crypto's supply is larger rather than market demand. So we can say that crypto is suffer from inflation.

Well in a the concern about the overall price growth affect by the increasing number of crypto, it is I think clear for us to see that, that happens because the market capitalization is getting divided off for these cryptocurrency to have been supported in the market and to stay competitive. In that case, I don't really think it is still debatable.

If only many of these project could follow the strategy of Binance, then inflation would have been reduced, normally every coin has the tendency of always having more supply than demand because of the too many crypto currencies we have in the market, the strategy of Binance uses in curtailing this is to find away to buy some of these tokens from investors, and when they do, they burn them and thereby reducing the number of supply in the market. If there can be limited supply of coins in the market, then the value of most tokens will increase.

Yes. One of the causes of inflation is high demand. In current times, the demand for crypto currency is rapidly growing because people want to earn money. Increasing demand will eventually lead to inability to supply for everyone and thus inflation happens. Just like in games (https://vegascasino.io/casino/video-slots/wild-pixies?utm_source=ccwp) if more people play the game the prizes also increase.

I will say for myself, if i find a new and interesting project, I invest new and free money. Bitcoin is protected from inflation and this is the most important thing.

"crypto" is not a singular thing to suffer from a singular problem!

there are thousands of them around and each of them have their own issues. most of them however are in fact suffering from inflation mainly because they were created by people who have no understanding of economics and they wanted to make money so they premined a huge amount and dumped it on the market.
many of them also have bad designs like ethereum that has unlimited supply and the inflation is huge causing the price of these coins to continue to drop over the long run.

Crypto does n't suffer from inflation because due to fact and is not a common conventional money . It’s not run by any government in the future.

For the aspect of if introduction of more cryptocurrency hurt the overall market price of other existing coins, yes it does. Let us go practical. Let us imagine that have bitcoin and Ethereum in the market alone, and each of them having 10000 supply each, an investor decides to buy from the supplies in the quantity of like 1000 token based on what he can afford, then he decided to share into two, 500 for Bitcoin and 500 for Ethereum, leaving both of them with 9500 supply left.

Let us now imagine that we have BTC, ETH, BNB, EOS, ADA, and about 15 more projects fighting for same person, this investors comes to the market with the intention of buying 1000 tokens based on his capacity, and all the 20 projects looks good, then he shares the 1000 between the 20 projects, which means each of their supply will only reduce by 50 as against 500. So you see why some projects are not increasing in value?

I do not think that there is such a problem in cryptocurrencies, because inflation is a process of excess candy wrappers that are worthless. Today cryptocurrencies are BTC and probably the top 5 cryptocurrencies. All other projects are just interest.

Yes inflation has been a problem not due to the the tokenomics of the coins but due to too many new projects coming up this has resulted in massive dumps and coins are selling below their real value and way below ico prices this is due to availability of too many coins and low buyers and low volume in the market so yes this inflatory pressure has been caused by dozens of new projects and it can only be eliminated by massive new volume and buyers in the market.

most likely not suffering from inflation and Manipulation in the market competition to a lesser extent,posomtrite when the market was growing,almost all the projects in the price rose very strongly growing up,and when the manipulation,and the price of the project just at the bottom fell down!

When we talk about inflation, we need to understand the standard fundamental truths that work in any financial markets. There will never be stability. And even more so in cryptocurrency. Volatility is normal. And we must learn to manage it)

I don't think it is inflation, it is more like selection. There are huge numbers of projects, and only few of them will survive in future, but you can't tell which ones it will be successful. So as far as people disappointed in project and stop believing in it, the tokens lose its price.Because now price depends not from project or product, but fro investors expectations and speculation.

In fact, it is difficult for the non-original to influence this kind of market. Those who deserve to gain value in this market often gain. Shitcoins often have difficulty in gaining value and disappear.

you can easily go to coinmarketcap.com or any other website like that which lists the supply of coins and then bring up their whole list (not just the top X list) and then add all the supplies in that list. the number you come up with has somewhere around 18-20 zeros in front of it. that should answer your question about "inflation" of crypto. which will also raise the question of do we really need that many coins!!! there isn't even that many people in the world...

It depends, it is not always that proportion when there will be a new cryptocurrency in the market, some other dies, for this reason I think it is just the matter of support and the marketing that will going to make the project very well, and not that because, cryptocurrency space is getting even bigger.

For me cryptocurrency is a virtual world that contains various people from all over the world. Many types of digital money in cryptocurrency. Indeed, not all of them have value. From indirect elimination there are several coins that have high value and popularity. Inflation in my opinion is not too influential on cryptocurrency because of the limitation on every token generated from the world of cryptocurrency. What happens is price fluctuations.

One of the tenets of cryptocurrency is that its not affected by inflation.
Inflation is definited as the continuous increase in the price of goods and services without a corresponding increase in the value of the money.
Inflation basically affects the fiat while cryptocurrency is affected by volatility of prices.

Every coin gaining its own value if others falling doesn't means its inflation,its just the useless shit projects cn't stay in the tough competition among other cryptos.

Most of the shit coins in the market today are already suffering from inflation because the coin supply is more then it demand and that always result into gradual decrease in the price and if care is not the most of them will still become worthless. But if a coin like bitcoin who have sustained is balance between it demands and supply it very difficult for it to be affected by inflation.

I agree that over the period, the market will soon correct this - but in my opinion, there will be always a saturation since new coins are added. It's a cycle. Money will somehow be ended in wrong hands. Unless we users agreed to create a common ideals.

If I get you correctly you were asking if cryptocurrencies can lose all their values? The answer is yes. If a coin is abandoned for a long time, the value will bascally become valueless or zero.

Yes, I think that is true, if you compare the basic values of all coins, it certainly looks worthless if left in the long run because each coin has strength in a particular field and in my opinion there are only 2 answers that continue to grow or conflict. As we know, new projects continue to grow, most of which rise to the value of these coins and this problem occurs because of the team's seriousness in processing involvement.

In this matter, nothing really depends on inflation, since the decline in the project's course relates to the investors themselves who lose faith in the project and that’s all. It is for this price that falls.

I don't think that the cryptocurrency has suffered from inflation because the price of the cryptocurrency is up and down and it's not related to inflation. Besides that, it is normal to see the price of every coin is up and down because all of the coins just following to bitcoin so wherever bitcoin go, the altcoin will follow. But we don't know what will happen in the future because all of the coins still depends on bitcoin movements, so there are many possibilities to happen.

I do not think that inflation is taking place on the market. The buying ability is getting lower and lower, and the difficulty of mining is constantly raising. Once the market recovers, it would be a problem any longer.

It does.
Dont you see a coin that reaches like a millionth of a dollar in value? That is because of inflation.

Bitcoin dont have that property and that just means one thing. It goes up as time goes on and when every bitcoin is mined we might see a lot more changes going up in value.

It is property of every financial system. When the amount is higher and there is not much demand then the value depreciate. Better stay with the trusted and best ones.

I do not think so.  Because bitcoin is always in the trend of buying.  And over time, it will only become stronger and more expensive.  Yes, altcoins are not very trusting source of income.  Because at any moment may fail.

I believe that cryptocurrency and inflation are incompatible things in this world.  Because here coins are mined.  And no one said that somewhere there is an end.

Since cryptocurrency has economic value in it, it can surely be affected by inflation.
Most especially hat it is being traded in the market, so it is more like a thing that can still be compared with trading and commerce.

It has value but they frequent birth of new project that spring up daily has given a kind of bad image to cryptocurrencies. That’s why many peopl are  scared to invest.

this shows that crypto is growing rapidly, more people want to use crypto, including companies, they associate various concepts with crypto and I think that's good but because there are many failures and scams it can have a negative effect on crypto continuity due to crypto and project world trust can fade if there are always scams or other fraudulent actions

I don't think inflation in the proper meaning is what affects the crypto industry rather, I belive crypto suffers from intermittent loss of interest in the form of investments leading to persistent fall in prices and market capitalization. These are both solvable. The industry needs a high level of regulations, law enactments and public adoption and backing. If these are all put in place, then expect massive growth in the sector.

I can definitely say that there are a lot of Altcoins in the market where there is a high inflation rate, 5-15% per year, but it can be higher. This is not very good for the price of these coins.

I guess not, it rather helps even a little. As you know if new tokens are born especially legit ones, there are tons of fiat money getting in to it. More people are drag into cytpo market and there just adds up money. If they manage to sell or trade the new token with BTC or when available, it will again add to Bitcoins market capitalization, people do that when they that only Bitcoin is what they really need to hold. More new projects comes new money with some new investors too, it is a win win situation.

For the time being, cyptocurrency does not experience the ill effects of swelling and this might be because of the way that it's anything but a typical conventional money and it is decentralized as in it isn't run by any administration however might be later on there would be more mediation from outside bodies.

Cryptocurrency within its ecosystem can experience inflation. A more reason why project team or developers often decide to burn coins/tokens either to reduce the inflation or cut total coin supply. While some even go through the buyback process to give more value to the token. Crypto can have inflation and experience lower price value. However, bitcoin has been exceptional because of its model that has so far put inflation in check to the bearest minimal.

Yes
Funny enough; more people still fall for scam projects and icos which is bad

Each newbie needs to understand economics basic principles and it applies to crypto currency too
No matter the ath of a coin; it will definitely come down

each currency will experience inflation and not only occur with crypto currencies because the development of investment from the crypto currency depends on the investor and anything can happen without anyone being able to predict the currency

That’s not inflation, its volatility and yes there’s a chance for a shitcoins to lose its real value not because of inflation but because they are meant to be like that since they have no real function in the market. Many are just a scam coins, investors are suffering because of this its better to buy giant coins.