RE: Inflation & Tokenomics
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With the USD as reserve currency of the world, inflation was exported and spread out throughout the world partially explaining why they have been able to do this for decades without immediate inflation. Even so we are now seeing rapid inflation which shows how much they are expanding the monetary base.
Correct me if I'm wrong here but Ethereum doesn't have a maximum cap on its coins so even though they are being burned they are also being created offsetting the burning.
Inflation is a form of unofficial taxation and it always ends the same way with the devaluation and eventual collapse of the currency. BTC can't be inflated to zero and I look forward to the day when countries abandon central banks and use BTC as their currency which will help all people apart from those running our current corrupt central banking system.
Yes, I think this exporting of dollars has been a big contributor to the massive decline in monetary velocity over time.
That's correct. Notice that I said "Burned transaction fees could result in a decrease in Ethereum’s monetary base" instead of "Burned transaction fees will result in a decrease in Ethereum’s monetary base". There would only be a decrease in Ethereum's monetary base during periods where burned transaction fees more than offset the issuance. Under Proof of Work, those periods are rare, under Proof of Stake they could become much more common.
BTC also has steady inflation; it is only considered deflation relative to other currencies that all have higher deflation rates. (It is possible, but unlikely, that the ongoing 'loss' of BTC due to poor key storage is already greater than its inflation rate. If so, then BTC is technically deflationary.)
Don't get me wrong, I like Bitcoin and I hold BTC in my portfolio, but potential investments should always be considered relative to your other opportunities. A maximalist position is intellectually weak, unless it is constantly reexamined in light of other narratives and new information.