Altcoins have been getting absolutely crushed for much of 2019
However, bitcoin has been performing very well.
Why is that?
Well, it has been happening for several reasons mostly pertaining to demand, but there are also some issues on the supply side as well.
Bitcoin currently has an inflation rate of less than 4% per year and that is going drop to under 2% after this next block reward halving.
By comparison, check out some of the altcoin inflation numbers (pay Special attention to the Zcash and XRP numbers):
(Source:
)https://twitter.com/krugermacro/status/1172594623098871809
- krugermacro
Zcash and XRP are both over 27% inflation rates annually.
Pretty tough to compete with bitcoin when you are inflating by 7x as much, soon to be 14x as much annually!
Where does steem stand?
Steem is considered to have a fairly high inflation rate as well, though not nearly on the level of Zcash or XRP.
Here is a table of Steem's inflation rate:
Year Supply Inflation New Supply
2016 250,000,000 9.50% 23,750,000
2017 273,750,000 9.08% 24,854,398
2018 298,604,398 8.66% 25,854,554
2019 324,458,952 8.24% 26,727,942
2020 351,186,894 7.82% 27,452,027
2021 378,638,921 7.40% 28,004,740
2022 406,643,661 6.98% 28,364,989
2023 435,008,650 6.55% 28,513,181
2024 463,521,832 6.13% 28,431,762
2025 491,953,593 5.71% 28,105,742
2026 520,059,335 5.29% 27,523,204
2027 547,582,539 4.87% 26,675,768
2028 574,258,308 4.45% 25,558,997
2029 599,817,304 4.03% 24,172,733
2030 623,990,038 3.61% 22,521,348
2031 646,511,386 3.19% 20,613,886
2032 667,125,272 2.77% 18,464,106
2033 685,589,378 2.35% 16,090,399
2034 701,679,777 1.93% 13,515,587
2035 715,195,364 1.51% 10,766,608
2036 725,961,973 1.08% 7,874,074
2037 733,836,047 0.95% 6,971,442
Not bad, and getting better!
The current inflation rate is around 8% per year for steem, and that drops by roughly .5% every year until it stops at .95% in 2037 and stays at that level forever.
Eventually steem may be considered a "low inflation coin", but we are not at those levels yet and won't be for some time.
The good news is that much of the inflation is locked up in SP, so the amount of new steem actually hitting the exchanges is rather low.
Looking forward to the days when steem will be considered a low inflation coin!
Stay informed my friends.