Calculating the Inflation Rate of a Cryptocurrency

[lthams]

Hi there,

I'm currently doing some research on the cryptocurrency space and am currently looking at a cryptocurrency known as BSC Station (BSCS).

My goal is to calculate its rate of inflation i.e the rate at which its supply increases over time.

I was wondering if I would be able to get some guidance on how I might go about doing so.

Thanks.

[bitmover]

Bitcoin inflation rate decreases over time.
this is the "classic" bitcoin inflation rate image:



The supply is growing with every block reward, but it is reduced by half nearly every 4 years. It was 50 BTC per block in 2009, then 25, then 12.5 and now the reward is 6.25 BTC per block.

To calculate the inflation rate, you need to see how much per year the total supply increases.

FOr now, BTC inflation rate is about 1,8% per year. You can check here:
https://charts.woobull.com/bitcoin-inflation/

Lets try to calculate:
6.25 BTC per 10minutes.

About 900 BTC per day and 328,500 per year.

For a total or 18,900,000 BTC already mined:

328500 / 18900000 = 0,01738, which is  1.738% inflation per year.

US had about 7% inflation last year, which is 4 times more inflation than BTC's.

[lthams]

Hi there,

Thanks for the information.

However, my query pertains to BSC Station or more widely, for a cryptocurrency that we do not really have knowledge about. How do we find out more about the rate at which supply is evolving?

[vv181]

However, my query pertains to BSC Station or more widely, for a cryptocurrency that we do not really have knowledge about. How do we find out more about the rate at which supply is evolving?

I don't know the exact calculation that should pertain in order to correctly calculate that token. But I suggest you should see their token tokenomics as a start. Go from there to seek how the supply evolves over time and see how the burn mechanism works in that particular token.

Here is the link for the referred tokenomics: https://docs.bscstation.finance/bscs

All the details are pretty much listed there, but I can't help you with how to directly verify it on the blockchain.

[zasad@]

Why calculate the inflation rate of this token? According to the vesting conditions, the number of tokens in circulation will increase linearly until nge reaches a maximum value of 500,000,000.
https://www.coingecko.com/en/coins/bsc-station
In the near future, only a fall in the price of the token is expected.

[indah rezqi]

For it is not too important to do, but I also do not forbid if it is important for you to do then it is your right.
Currently the crypto drop chart is very high especially the top BTC and Altcoins. We can review the results based on the data that happened this week.
You can see it here: https://www.coingecko.com/en/coins/bsc-station

[Bttzed03]

~ However, my query pertains to BSC Station or more widely, for a cryptocurrency that we do not really have knowledge about. How do we find out more about the rate at which supply is evolving?

You can follow the sample computation provided by bitmover but use the data from BSCS. You should probably start with the project's whitepaper and look for the token's daily emission rate (how many tokens are created per block). It should be there.

[perfect999]

Lets try to calculate:
6.25 BTC per 10minutes.

About 900 BTC per day and 328,500 per year.

For a total or 18,900,000 BTC already mined:

328500 / 18900000 = 0,01738, which is  1.738% inflation per year.

US had about 7% inflation last year, which is 4 times more inflation than BTC's.

I honestly did not know how to calculate it, thanks for this info. I always assumed dollar worth when calculation inflation. Like if someone asked me about inflation in bitcoin, I would say there is no inflation, just like how there is no "inflation" for most stocks, they are just companies and same for us.

However, we are not a company obviously, the similarity in my mind is that one share of tesla stock will always be told with a dollar price, and one bitcoin will always be valued with a dollar price as well. This is why I never considered it as currency in the inflation department, which is a very very wrong thing to do by me. Thanks to your post, I know what I will be capable of doing, it is really really helpful.