04-18-2022, 05:58 AM
Why isn't crypto inflation talked about more?
<!-- SC_OFF --><div class="md"><p>So many people talk about staking as a safe way to earn passive income, but I don't think enough talk about coin inflation.</p> <p>12% for Polkadot sounds great until you find out inflation is about 10%. Still, "plus 2%" is still better than the "minus 7%" like we're getting in savings accounts due to fiat inflation.</p> <p>But then there are coins whose inflation roughly matches staking rewards. Or worse, coins like Algo with a 5% stake reward and 22.5% inflation rate. <a href="https://messari.io/asset/algorand/metrics/all">https://messari.io/asset/algorand/metrics/all</a></p> <p>Can staking these coins still be called passive income if the <strong>coin inflation rate</strong> eats the whole staking reward and then some? Is the value of these types of coin solely coming from the speculation of long-term utility and bringing buyers on board to pump the price?</p> <p>Edit: clarified inflation to 'coin inflation rate' (I'm not trying to hedge against fiat inflation)</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Iron_Defender"> /u/Iron_Defender </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/u5om26/why_isnt_crypto_inflation_talked_about_more/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/u5om26/why_isnt_crypto_inflation_talked_about_more/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>So many people talk about staking as a safe way to earn passive income, but I don't think enough talk about coin inflation.</p> <p>12% for Polkadot sounds great until you find out inflation is about 10%. Still, "plus 2%" is still better than the "minus 7%" like we're getting in savings accounts due to fiat inflation.</p> <p>But then there are coins whose inflation roughly matches staking rewards. Or worse, coins like Algo with a 5% stake reward and 22.5% inflation rate. <a href="https://messari.io/asset/algorand/metrics/all">https://messari.io/asset/algorand/metrics/all</a></p> <p>Can staking these coins still be called passive income if the <strong>coin inflation rate</strong> eats the whole staking reward and then some? Is the value of these types of coin solely coming from the speculation of long-term utility and bringing buyers on board to pump the price?</p> <p>Edit: clarified inflation to 'coin inflation rate' (I'm not trying to hedge against fiat inflation)</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Iron_Defender"> /u/Iron_Defender </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/u5om26/why_isnt_crypto_inflation_talked_about_more/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/u5om26/why_isnt_crypto_inflation_talked_about_more/">[comments]</a></span>Kind Regards R