Ethereum's Lower Inflation: A Fun Fact
Ethereum has lower inflation than Bitcoin, even after the next halvening. Ethereum's proof of stake makes it more secure than Bitcoin's proof of waste. Learn more about this fun fact in this blog!
Evan Van Ness
I'm from the Ethereum wing of the Ethereum community I do my best to clean up this community. You should help.
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Fun fact:
— Evan Van Ness (@evan_van_ness) June 10, 2023
If the gas price goes to zero, ETH will still have lower "inflation" than Btc
Even after the next halvening -
Ethereum proof of stake
— Evan Van Ness (@evan_van_ness) June 10, 2023
Lower inflation 🤝 better security
😩 Bitcoin proof of waste can't do this -
(ackshually, if tens of millions more ETH were staked and gas price were to go to zero, then ETH could be slightly more inflationary than our favorite orange memecoin after the next halvening)
— Evan Van Ness (@evan_van_ness) June 10, 2023
It would still be more secure than proof of waste though 💪 -
To explain this a little more
— Evan Van Ness (@evan_van_ness) June 10, 2023
For every 1 gwei in avg gas price per day, it's about 100 Eth burned per day.
Eg, avg gas 20 gwei that day = 2000 daily burn
Avg gas 10 gwei = 1000 burn
Avg gas 100 = 10000 eth burn -
Current staking (~20m eth) is about 2k issuance per day
— Evan Van Ness (@evan_van_ness) June 10, 2023
If staked eth were to triple to 60m (meaning ~50% of all eth is staked), then daily issuance ~3500
thus "ultrasound" gas price would = ~35 -
Tldr
— Evan Van Ness (@evan_van_ness) June 10, 2023
It's theoretically possible that ETH could have more "inflation" than Btc after next halvening
But practically it's pretty close to impossible even in a complete crypto winter