Is "inflation" really the right term given how little these currencies at used to purchase real world goods? Stock prices go up but no one cares about the "inflation" of AAPL.
Is "inflation" really the right term given how little these currencies at used to purchase real world goods? Stock prices go up but no one cares about the "inflation" of AAPL.
Yes it is inflation because the ETH is being created from nothing and paid to the miners. In order for them to pay for their electricity/bills they must sell the ETH into a local fiat. This puts sell pressure on the market.
Right, so sell pressure is deflationary on the asset, and rising crypto prices is deflationary in the real economy. I'm a big ETH guy because of the platform, but ever-rising prices are ultimately deflationary and will inhibit usage.
Is "inflation" really the right term given how little these currencies at used to purchase real world goods? Stock prices go up but no one cares about the "inflation" of AAPL.
Yes it is inflation because the ETH is being created from nothing and paid to the miners. In order for them to pay for their electricity/bills they must sell the ETH into a local fiat. This puts sell pressure on the market.
Right, so sell pressure is deflationary on the asset, and rising crypto prices is deflationary in the real economy. I'm a big ETH guy because of the platform, but ever-rising prices are ultimately deflationary and will inhibit usage.