This website uses cookies to ensure you get the best experience on our website

Blog

Date:
04th Dec 2020
Author:
CryptoAltum Research Team

ETH inflation Rate will be Lower than Bitcoin’s in Ethereum 2.0


Bitcoin has a fixed supply of 21 million and is deflationary. On the other hand, Ethereum is inflationary because of the development fund. However, with the launch of Eth2, Ethereum’s inflation rate will drop below one percent and even to zero. This rate will be lower than Bitcoin’s according to a Messari Researcher, Ryan Watkins.


Details: 

Bitcoin and Ethereum are two of the world’s largest networks. Though both have a Proof-of-Work consensus algorithm, Bitcoin’s fixed supply makes it a deflationary network as fewer coins are released in each epoch. However, analysts are confident that in Phase 1.5 of Eth2, Ethereum’s inflation rate will fall below that of Bitcoin and possibly to negative territory. At this pace, the network may compete with Bitcoin as a store of value but with better features besides being a platform for sending and receiving funds. Bitcoin is now the king and has benefited immensely from capital flight as central banks hit the money printers.


Impact on the ETH Price: 

Bullish. If ETH becomes a deflationary network, it may quickly serve as a store of value asset and a smart contracting platform while being the most active. All-rounded features that may see the coin rally, perhaps printing new all-time highs.


More market updates on our Blog


Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.

This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.

CryptoAltum does not accept any clients under the age of 18. 
  • Copyright Techcraft Ltd (CryptoAltum) 2020