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Effect of coin inflation on the price

The long-term price evolution of a cryptocurrency (crypto) depends on the number of coins offered on the market. The more coins are offered, the lower the price.

In the table You can see for each crypto the rules for new coins to come into the market. In the column "Annual inflation", the monetary inflation in million $ is given, this is the total value of all coins that come on the market annually. This monetary inflation must be additionally invested annually in the respective coin, so that the inflationary supply can be compensated.

Now if XRP reaches the value of $ 100 then its monetary inflation would be $ 360 billion EVERY YEAR, much higher than today's total crypto market capitalization. From today's perspective difficult to imagine. ETH has a similar problem reaching a price of $ 20,000. At ETH, the situation is even worse, because ETH inflation will never end.

In this way every coin can be analyzed. As far as the long-term view. But what does that mean for the current crypto cycle? Well, all cryptos have shown in the past that despite inflation they can rise a lot (see ATHs). And inflation in 2017 was even higher than today. XRP has even risen to $ 3.5. In the current cycle, in my view, even higher prices are possible when the next ATH comes.  Only in the longer term will the high-inflation coins reach hard limits in terms of price development keeping prices permanently at higher level, if the infltion is not changed. IOTA does not have any inflation and NEO in about 2 years also not. Other coins later dispense with their inflation, e.g. BTC.

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