Based on coins mined from August 5th to September 4th the annualized inflation rate is 19.3% for PPC and 15.1% for Bitcoin.
d5000 did an inflation study showing that in the month preceding June 26 the PPC inflation rate was 22.2% annualized while Bitcoin’s annualized rate was 14.2%:
https://bitcointalk.org/index.php?topic=227395.0If trends continued we could expect PPC inflation to fall below that of BTC’s on November 21 of this year. Of course, there are a number of variables affecting the inflation rates that are in constant flux. Let’s examine what these variables are:
1. PPC difficulty: The proof of work inflation in PPC (responsible for all but 1% of the total PPC inflation) is cut in half every time there is a 16X increase in difficulty. This fact brings us to the question of how quickly the PPC difficulty will rise, which is linked to the deployment of ASICs.
2. Rate at which new ASICs are deployed: If the PPC/BTC exchange price (0.00149) remained constant we can project that the PPC/BTC difficulty ratio (0.0152) would also remain nearly constant, so that PPC difficulty would rise in proportion to BTC difficulty. Some are suggesting that the total terahashes of all deployed ASICs will double monthly for several months while others think it will grow more slowly.
3. PPC/BTC exchange price: A doubling of the PPC/BTC exchange price should bring a doubling in the PPC/BTC difficulty ratio. This is the hardest factor to predict and brings considerable uncertainty as to when and if the PPC inflation rate will fall below that of BTC.
4. Rate at which BTC difficulty rises: If BTC difficulty stopped rising , BTC inflation would drop by several percent.
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