Suche
Mein Konto
Ethereum dethrones Bitcoin: currency with lower inflation
Learn why Ethereum might be a better choice over Bitcoin and how inflation plays a role in cryptocurrencies. Also discover the emerging alternative Solana and the upcoming Slothana presale.
Ethereum dethrones Bitcoin: currency with lower inflation
In the last 24 hours, Bitcoin has fallen by around 3.5 percent, while Ethereum has only suffered losses of 2.8 percent. Even on a weekly basis, Ethereum is trading somewhat more firmly than the most valuable cryptocurrency in the world. But the recent marginally better price development is not the decisive metric in which Ethereum is ahead. Rather, the following on-chain analyst points to the inflationary development of both cryptocurrencies, in which Ethereum is ahead despite widely held assumptions.
In the commentary here, the analyst highlights that Ethereum has a lower inflation rate than Bitcoin despite the recent halving intended to reduce Bitcoin's supply. Although Bitcoin's supply growth has been halved, Ethereum remains more attractive in this regard due to its lower issuance rate. This comparison highlights Ethereum's better control of supply. Thus, relatively speaking, Ethereum is less inflationary than Bitcoin.
The inflation rate for cryptocurrencies is a significant factor, but not the only indicator of their success. Minor differences in the inflation of Bitcoin and Ethereum are less important than ensuring that both currencies are not devalued by massive inflation. A controlled supply that limits inflation is crucial to preserving value. The stability of supply therefore plays a greater role than minimal deviations in the inflation rate. These principles are intended to strengthen investor confidence and secure the long-term value of cryptocurrencies. In terms of tokenomics, both Bitcoin and Ethereum are likely to have laid the foundations to perform positively in the medium term.
Ethereum remains an exciting investment that differs from Bitcoin. While Bitcoin is viewed as digital gold, Ethereum impresses with its broad applicability and support for smart contracts, making it a versatile platform for DeFi, RWA and Co. Therefore, investors should not only focus on inflation rates, but also on the possible applications and innovative power of the respective cryptocurrencies in order to make informed investment decisions.