Monero’s (XMR) Inflation Rate Lower than Bitcoin’s

Monero
(XMR), the leading privacy-focused crypto, has recorded another milestone by
having a lower rate than that of (BTC). Notably, Monero’s
inflation reduces at a higher rate compared to that of Bitcoin due to the
coin’s emission curve.

In the past, the fall has been moving towards converging with that of Bitcoin but, after converging, Monero’s inflation rate is now lower than Bitcoin’s.

As
noted by a Redditor:

“Monero’s inflation rate [has] dropped below that of BTC. Most altcoin “halvening” are hugely hyped, leading to volatility, pumps and crashes. Monero doesn’t get hyped like that because the emission rate drops smoothly with every block, making it less rough and disruptive for miners that otherwise suffer abrupt profitability changes. As a result, few think about how scarce it is, For example, LTC’s laving is being celebrated but it is still halving behind Bitcoin. There are fewer reminders that the scarcity is always increasing so I am writing this as a reminder.”

Bitcoin and Monero follow different paths when it comes to halving and inflation rates. Bitcoin, for example, has a hard capitalization while Monero uses tail emission. Interestingly, some crypto enthusiasts consider the difference to be the differentiating factor between BTC, XMR, and gold.

While
they consider the cryptos to be similar “in the next 15 years, later Bitcoin will part away from gold and
Monero.”

Also,
some consider the lower inflation rate to be temporary. “The Monero inflation rate will be below BTC
until May 2020, and then forever higher
,” noted Printer-Pam, a
Redditor.

Interestingly, a lower inflation rate for Monero may translate to a higher . Therefore, considering the inflation metric, Monero will continue to increase Bitcoin in the future.

All XMR Blocks Will Be Mined By Mid-2020

The difference between BTC and XMR is evident in the mining structure. Although both use the Proof-of-Work algorithm, all Monero blocks will be mined by May 2020 while Bitcoin’s last block will be mined 100 years from today.

Unlike
BTC which as a hard supply once all Bitcoins are extracted, Monero will
continue to release 0.6 XMR/minute as block reward even after the last block
has been mined.

Monero calls this phenomenon “tail emission.” To justify the small XMR block rewards, Moneropedia states:

“Miners need an incentive Because of the dynamic block size, completion between miners will cause fees to decrease. If mining is not profitable due to a high cost and reward, miners lose their incentive and will stop mining, reducing the security of the network. Tail emission ensures that a dynamic block size and fee can develop.”

Tail emission is
a supply system that prevents block rewards from falling to zero even after the
last block has been mined.

Over time, the correlation between BTC and XMR has been strong and positive. According to observers, as Bitcoin moves towards the start of a bull run, Monero will also appreciate in equal measure.

Surprisingly,
Monero’s inflation rate will only stay above Bitcoin’s for only a decade from
2019 to 2027/2028.

According
to a Redditor:

“In 2019, the XMR money supply will get close to Bitcoin’s money supply (gap<million coins), then the gap will grow again to nearly 2 million coins by 2027/2028 before it shrinks again. In 2040, we [will] see the intersection point of identical coin supply for Monero and Bitcoin (both nearly 21 million coins).”

Monero’s (XMR) Inflation Rate Lower than Bitcoin’s

Monero’s (XMR) Inflation Rate Lower than Bitcoin’s

This article was originally posted on Ethereum News – an independent news provider covereing Ethereum, Bitcoin, Ripple, Litecoin dApps, start- ICO’ and the whole Blockchain […]
Source: cryptonewsmonitor
Monero’s (XMR) Inflation Rate Lower than Bitcoin’s

Related posts

Today the Monero inflation rate dropped below that of BTC

Most altcoin “halvenings” are hyped hugely, leading to , pumps and crashes. doesn’t get hyped like that because the emission rate drops smoothly with every block, making it less rough and disruptive for miners that otherwise suffer abrupt profitability changes.

As a result, few think about scarce it is. For example, LTC’s halving is being celebrated but it is a halving behind Bitcoin. There are less reminders that the scarcity is always increasing, I writing this as a reminder.

submitted by /u/xmr1995
[link] [comments]
Source: CryptoCurrency
Today the Monero inflation rate dropped below that of BTC

Related posts

Bitcoin Traps Gold’s Market Share as Sovereign Bonds Become Unattractive

Bitcoin’s revival is considered to be Facebook’s Libra doing. The social media’s giant sudden foray into the cryptocurrency industry gave bitcoin, as many believe, a reason to grow its valuation.

That is until one considers a simultaneous price rally that took place in the market. Bitcoin’s rise above the $13,000 has only one potential link to the yellow metal’s ascent above $1,400 an ounce: a weaker US dollar sentiment.

bitcoin, bitcoin price, btc usd

Bitcoin has Recovered by More than 275% Since Its Bounce Back from the $3,120 Level | Image Credits: TradingView.com

Gold, Bitcoin against US Dollar

The trouble in the American greenback started with politically-influenced overborrowing. President Donald Trump’s massive tax cut of $1.5 trillion in 2017, by his pressure on the Federal Reserve to keep the rates steady burdened the US with a $22 trillion debt and $1 trillion in annual deficits. Ahead of the 2020 presidential elections, President Trump is more tax cuts. Atop that, the Fed has declared that it is going to cut rates in July.

The impact is already out in the open. The US dollar on Thursday drifted further away from its highs, although the index recovered from its three-month lows of 95.843 in June. Waning sentiments for a resolution in the ongoing US-China trade war is hurting the dollar sentiment.

“Everyone from the Reserve Bank of Australia to the Fed is talking about inflation disappointing to the downside,” Mayank Mishra, Singapore-based macro strategist at Standard Chartered, told CNBC. “The Fed arguably has more room to ease than else. That, in theory, should lead to a weaker dollar.”

The dwindling sentiment in the greenback market is lending credibility to both traditional and modern -haven assets, including bitcoin and gold.

Holger Zschaepitz, the financial correspondent at WELT, a Berlin-based financial news service, noted that the cryptocurrency had passed the digital divide towards the yellow metal. He said on Thursday:

“Bitcoin gaining traction as store-of-value and digital gold in this crazy politicized central bank world with or lower for longer low rates. Digital currency passes digital divide toward Gold. Both assets reached key thresholds in June, $10k & $1,400, now trade in tandem.”

Miles to Go

Many analysts think that bitcoin still has to solve its price volatility before it becomes a store of value asset. FT.com reports that investors are hedging into bitcoin as a lottery ticket while hunting for returns.

Meanwhile, prominent gold bull Peter Schiff says that the cryptocurrency is a “fool’s gold,” mainly because it has no intrinsic value like the yellow metal, which still gets used for industrial purposes. While arguing with Barry Silbert, the founder & CEO of Digital Currency Group, Schiff noted that people buy bitcoin expecting they would be able to sell it at a higher rate in the future.

“This is pure speculation,” he .

The post Bitcoin Traps Gold’s Market Share as Sovereign Bonds Become Unattractive appeared first on NewsBTC.


Source: newsbtc
Bitcoin Traps Gold’s Market Share as Sovereign Bonds Become Unattractive

Related posts

Crypto Ambitions Rise in Cuba to Curb Economic Crisis

The number of countries facing economic woes is rising dramatically. In order to mitigate the impact of inflation, nations are looking towards cryptocurrency as one possible solution and Cuba is the latest to turn to digital assets.

Cuba Going

As part of a series of measures to boost its economy the Cuban government said that it was looking into the use of cryptocurrencies. The move comes amid a deepening crisis exacerbated by US sanctions which appear to be spreading across the globe as president Trump deepens his economic embargoes.

The island nation’s state run economy is crumbling to a decline in Venezuelan aid, lower exports, and tightening of sanctions to a Reuters report. President Miguel Diaz-Canel announced the measures on state-run TV this week which will also income for around a quarter of the population and deepen market reforms.

Economy Minister Alejandro Gil Fernandez said:

“We are studying the potential use of cryptocurrency … in our national and international commercial , and we are working on that together with academics,”

There were no further details or specifics on whether Cuba would be developing its own state crypto, similar to Venezuala’s Petro, or would be looking towards existing digital currencies.

Venezuela is facing a similar problem as is devaluing the national currency on a daily basis. Just last week the Banco Central Venezuela printed more new notes in 10,000, 20,000 and 50,000 bolivar denominations. The state announced the launch of a new re-denominated Bolivar which shaved zeros off the national currency during last year’s monetary reform.

Venezuelans has flocked to Bitcoin as an alternative hedge according to Coin Dance. Volumes have surged to all-time highs of over 46 billion in recent weeks as bitcoin hit new highs for fifteen months.

McAfee to the Rescue

Crypto warlord John McAfee was quick to offer his services to the Cuba government if and when it proceeds with its crypto ambitions.

“Cuba is planning to use Cryptocurrency to get around the 63 years of economic strangulation imposed upon 14 million Cuban people by the insanity of the US Government. Finally, a large scale, real world application for Cryptocurrencies. If Cuba wants my help, I am here.”

McAfee is currently holed up somewhere in Havana, on the run from the far reaching tendrils of the US tax department. US regulators are still wary of nations attempting to evade sanctions by using crypto currencies and may well unfavorably upon them at home.

As president Trump continues to flex his economic muscles the number of nations looking to distance themselves from America and its dollar is growing. Cuba is the latest and it joins the ranks of Russia, Venezuela, Iran and China in the ever expanding list of sanctioned countries.

Image from Shutterstock

The post Crypto Ambitions Rise in Cuba to Curb Economic Crisis appeared first on NewsBTC.


Source: newsbtc
Crypto Ambitions Rise in Cuba to Curb Economic Crisis

Related posts

Venezuela economy shrank 22.5% in Q3 2018 | Monthly inflation in April was 33.8%, while 2018 full-year inflation reached 130,060%

Venezuela economy shrank 22.5% in Q3 2018 | Monthly inflation in April was 33.8%, while 2018 full-year inflation reached 130,060% submitted by /u/ChavezHugo
[link] [comments]


Source: BTC
Venezuela economy shrank 22.5% in Q3 2018 | Monthly inflation in April was 33.8%, while 2018 full-year inflation reached 130,060%

Related posts

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

Countries Suffering from Rapid Inflation Show Significant Demand for Cryptos

have been trending upwards in price over the last few weeks, but in certain countries the world assets have become far more valuable. For instance, in Argentina, the nation’s sovereign currency has lost considerable value and cryptocurrencies like BTC are seeing all-time price highs. The surge in value is not just taking place in Argentina as a few other countries suffering from hyperinflation are seeing significant demand as well.

Also read: Bitcoin.com Celebrates 4 Million Wallets Created

Lots of Crypto Demand Stems from Countries Experiencing High Inflation and Currency Devaluation

Over the last week, digital currency supporters have noticed that the price of bitcoin core (BTC) and a few other popular assets have been seeing higher price gains in some markets compared with the rest of the world. The trend has been seen in countries suffering from economic distress and hyperinflation, an accelerated version of traditional inflation. Essentially the state’s currency begins to erode extremely fast and the prices of goods like food and medical supplies increase. Due to this factor, the region’s citizens usually switch to more stable foreign currencies in order to hedge rapid inflation. Crypto supporters have been noticing this happen with digital assets and recently people have observed the high price of BTC in Argentina. Against the Argentine peso, bitcoin core’s value has spiked considerably and is even surpassing the all-time high in 2017.

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

Currently, the price per BTC is 390,719 pesos in Argentina and Localbitcoins trade volumes have also touched an all-time high. During the first week of May, Argentinian Localbitcoins volumes reached $13 million and trading has continued relentlessly. The Argentine peso has seen a massive decline against the U.S. dollar and the economic uncertainties stem from the country’s upcoming change in leadership. However, the same trend is taking place with a few other failing currencies too like the Venezuelan bolivar, Sudanese pound, and Turkish lira. And there are other countries like Colombia, Chile, and Russia that are seeing increased crypto volumes and more demand than usual. Further, places like Argentina and Venezuela are also seeing demand for bitcoin cash (BCH) over the last 30 days.

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

On Localbitcoins, the Turkish lira has seen steady volumes growing on the and prices show that the value of BTC is nearing 2017 highs as well. At press time 1 BTC is around 52,577 Turkish lira and there’s been 500,000 to 750,000 in Localbitcoins volumes over the last few weeks. Throughout 2018 and 2019 the Turkish economy has seen rapid inflation and the lira has seen a decline in value against other currencies. In addition to the lira, the Sudanese pound verses BTC has also been climbing dramatically.

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

At the time of publication, a single BTC is 393,650 Sudanese pounds and liquidity is extremely low in the region. Venezuela is also in the same circumstances as the country’s inflation rate of 1.30 million percent as of April 2019 has wreaked havoc on the sovereign bolivar. Over the past few weeks of Localbitcoins volume data, the country continues to smash all-time records. According to current exchange rates at press time, 1 BTC is 49,117,302 bolivars. There’s been a lot of focus on Venezuela because the country has the highest inflation rate globally but there are a few other countries that are following similar paths. Alongside BTC, crypto advocates have been promoting BCH heavily in these regions as well, with lots of attention focused on Venezuela’s hardships.

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

Local.Bitcoin.com Launch and the Bitcoin Cash Venezuela Merchant Initiative

Bitcoin Cash supporters have been in Venezuela promoting the use of the decentralized currency regularly. At Bitcoin.com we recognize the need for people to trade currencies for permissionless cryptocurrencies and that’s why we created Local.Bitcoin.com. People from all around the world can trade bitcoin cash (BCH) with each other in a peer-to-peer fashion when our noncustodial exchange Local BCH launches on June 4, 2019.

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

Bitcoin cash gives any global citizen the freedom to escape the erratic behavior of centralized fiat currencies. And the low transaction fees that are below one cent highlight how BCH is superior for remittances. In addition to the over-the-counter exchange coming next week, Bitcoin.com has also been pushing merchant adoption with our Bitcoin Cash Venezuela initiative. Our merchant adoption effort in the country aims to help retailers accept a new means of digital exchange and at the same time, escape the bolivar’s devaluation.

Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos
Read here how crypto and bitcoin cash adoption is strong in Venezuela despite the political and economic crisis.

The demand for cryptocurrencies has grown quite sizable over the last decade, but in the last few years interest stemming from regions suffering from severe economic hardships has spiked considerably. There is a great need for permissionless digital assets like BCH in countries where the state-issued currencies are becoming worthless, capital controls are imposed, and sanctions from oppressive leaders make economic participation harder. It’s likely at any time global citizens who really need a reliable medium of exchange will flock to digital assets that can provide the means to fulfill their ends. Individuals need alternative forms of money and especially a one that works. Interest in a cryptocurrency that can provide permissionless exchange, alongside reliability will surely surpass the speculative bunch of investors begging for institutional types to jump aboard. It is evident that citizens from Argentina, Turkey, Venezuela, and other countries are showing strong demand for permissionless assets and this will only continue to grow.

What do you think about the demand for cryptos in regions where rapid inflation is dominant? Let us know in the comments section below.


Image credits: Shutterstock, Google currency prices, Local.Bitcoin.com, Venezuela.Bitcoin.com, Coin Dance Cash.


Did you know you can also buy Bitcoin Cash online with us? Download free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

The post Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos appeared first on Bitcoin News.


Source: bitcoin.com
Countries Suffering From Rapid Inflation Show Significant Demand for Cryptos

Related posts

Inflation and Fear: BTC Price in Argentina Hit All-Time High – Finance and Funding – Altcoin Buzz

Inflation and Fear: Price in Argentina Hit All- High – Finance and Funding&nbsp;&nbsp;Altcoin BuzzThe Argentian economy is in shambles. As a result, Argentinians are investing in as an alternative store of value. price broke all-time high.
: worldnewsoffice
Inflation and Fear: BTC Price in Argentina Hit All-Time High – Finance and Funding – Altcoin Buzz

Related posts

The Top 5 Countries Gripped by Bitcoin FOMO Right Now

brazil bitcoin fomo

The naysayers called Bitcoin dead (more than 350 times, to be precise). Veteran investors like Warren Buffet called it a ‘delusion’. Well, tell that to these five countries gripped by FOMO fever right now.

Google Searches for Bitcoin Show FOMO in these Countries

1. Brazil

As the largest country and economy in South America, conditions for Bitcoin FOMO in Brazil are particularly ripe. And in fact, the land of the samba and caipirinhas recorded a new record level of BTC trading last month at over 100,000 bitcoins in 24 hours. That’s a massive 2 billion BRL (almost $500 million USD).

Bitcoin makes a compelling case in countries where trust of the traditional financial system and the governing party is low. Brazil, with its corrupt governments and rising inflation may not be Venezuela. But with 62 percent of its 212 million+ population aged 29 or younger, savvy generations are spreading the word.

brazil bitcoin

2. Colombia

Ranking second highest for Bitcoin searches on Google is Colombia. With its disastrous neighbor to the east, Colombia has become host to over one million Venezuelans over the last few years.

The country has a generally supportive government for cryptocurrencies and conditions for Bitcoin are favorable. But the added boost in FOMO appears to be from the Venezuelans living here.

Living with over one million percent inflation annually makes Bitcoin’s volatility during look like peanuts. Now the bull market is here, BTC has already made gains of 111 percent this year.

3. Germany

In a country famous for its conservatism, it’s hard to imagine the Germans buying into FOMO–especially when it comes to finances.

But then again, one of the country’s largest banks is consistently the main perpetrator in money laundering scandals. Its people are losing faith in the country’s leadership. Oh, and Germany is becoming somewhat of a breeding ground for cryptocurrency startups and legal STOs.

On top of that, more than one-quarter of young Germans has bought or is considering buying BTC and other cryptocurrencies. The Blockchain and Bitcoin conference Unchain coming up in Berlin in a couple of weeks could be an additional FOMO factor.

fomo in germany

4. Austria

Bitcoin searches climbed to a peak last month the of the ANON Blockchain Summit in Vienna. Here the news was officially announced that major names like , IBM, and Accenture heavily invested in blockchain.

Austria is big on Bitcoin in general with more than 100 Bitcoin ATMs in and around this tiny country. With a solid economy and low inflation, institutional investment in blockchain appears to be driving the retail FOMO right now.

5. Argentina

Heading back to South America, it’s no surprise that Argentina is now in the grips of FOMO when it comes to Bitcoin.

argentina bitcoin

Bitcoinist has reported multiple times about how its people are buying BTC to shield their wealth from rising inflation. In fact, at around 54 percent annually, the price of BTC in Argentina’s local currency, the peso, is already higher than its all-time high in 2017.

In a country that’s friendly towards Bitcoin, that allows it to be used for public transport, and whose economy is increasingly in tatters, Bitcoin makes perfect sense.

Bitcoin Way More Popular Than Other Cryptocurrencies

One interesting point to note is that when you compare searches for ‘Bitcoin’ to ‘Ethereum’, or ‘cryptocurrencies’, Bitcoin searches take almost all the traffic at an average of 95 percent.

bitcoin google trend

So while these countries may be getting gripped by Bitcoin FOMO, awareness of the ecosystem as a whole is still a long way .

Is rising BTC price fueling interest in Bitcoin once again? your thoughts below!


Images via Shutterstock

The post The Top 5 Countries Gripped by Bitcoin FOMO Right Now appeared first on Bitcoinist.com.


Source: bitcoinist
The Top 5 Countries Gripped by Bitcoin FOMO Right Now

Related posts