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Author Topic: Does crypto suffer from inflation?  (Read 368 times)
NightMar_1St (OP)
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May 03, 2019, 01:38:25 AM
 #1

As you all know. now more and more crypto projects are born. So does crypto have inflation and lose its original value?
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May 03, 2019, 01:45:40 AM
 #2

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.


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May 03, 2019, 03:01:50 AM
 #3

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.
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May 03, 2019, 03:09:23 AM
 #4

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.


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May 03, 2019, 03:16:36 AM
 #5

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

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.
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May 03, 2019, 03:17:43 AM
 #6

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.
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May 03, 2019, 03:42:13 AM
 #7

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

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May 03, 2019, 03:49:59 AM
 #8

As you all know. now more and more crypto projects are born. So does crypto have inflation and lose its original value?
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.
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May 03, 2019, 03:51:42 PM
 #9

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

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May 03, 2019, 03:54:25 PM
 #10

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.

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May 03, 2019, 04:09:56 PM
Last edit: May 03, 2019, 06:03:45 PM by rijaljun
 #11

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

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May 03, 2019, 11:52:03 PM
 #12

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.

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May 04, 2019, 05:17:52 AM
 #13

As you all know. now more and more crypto projects are born. So does crypto have inflation and lose its original value?
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.
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May 04, 2019, 05:50:55 AM
 #14

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
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May 04, 2019, 05:54:51 AM
 #15

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.

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May 04, 2019, 06:26:33 AM
 #16

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.

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.

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May 04, 2019, 01:12:28 PM
 #17

As you all know. now more and more crypto projects are born. So does crypto have inflation and lose its original value?
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.
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May 04, 2019, 01:27:08 PM
 #18

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 if more people play the game the prizes also increase.
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May 04, 2019, 01:30:28 PM
 #19

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.

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May 04, 2019, 01:59:04 PM
 #20

"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.

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