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Author Topic: What will happen if the inflation rate is exactly 2%?  (Read 45 times)
MiltonY (OP)
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March 10, 2024, 08:32:45 AM
 #1

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Central banks around the world are pursuing an inflation rate of 2%. What will happen if the inflation rate is exactly 2%?If there is a cryptocurrency generating a block every 10 minutes and mining 1050000000 coins in the first 210000 blocks.After that, the total supply increases by 8.243216% every 210000 blocks (about 4 years) (average annual inflation of 2%).What will happen?This is a massive social experiment.But I'm not good at coding.How do I create this cryptocurrency?
Yudhisthir
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March 10, 2024, 03:43:53 PM
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You can achieve that by going pow first and switching to pow in order to limit the supply by percentage of the total value.
Inflation of 2% means there would be slight increase of total supply every year but practically the number growth would be negligible.
Bitcoin is a coin that is limited in supply and practically decreasing. It's taken as an asset of limited supply and speculated to have an ever growing price.
For a coin that's increasing in number, the speculation about price growth could be lesser. It could be a good utility coin but might not attract long term holders.

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