A Different Approach to Grin’s Inflation and Supply

  1. Limited supply is not necessary for something to rise and increase in value. Because, as seen in the Grin example above, large purchases can easily ensure that a large part of the supply is stocked and its value increased. In this respect, it shows that inflation and supply are only one factor for investment but not a single factor.
  2. While heavy purchase in Bitcoin creates a centralized power forever, in Grin the power is decreasing over the years. This shows that when a large amount of investment is made, justice in Grin is achieved over time, while in Bitcoin it can create injustice forever.
  3. Even if Bitcoin is useless, its price can be inflated with its unlimited supply. For example, when millions of Bitcoins are locked in wallets without being used by central authorities, the price may inflate artificially. However, the big investor who buys Grin will look for a usage area. Because supply is unlimited, there is resistance to creating price inflation just by buying. Mass adoption and use is required.
  4. Finally, let’s consider that the price of Bitcoin and Grin starts at $1.Bitcoin soared as high as $65,000. This enabled the first investor to become 65,000 times richer. When we calculate the value of Grin with its unlimited supply, let’s assume that even if it replaces Bitcoin, it would average $2000 when it was in supply of 500 million. This enriches the first investor 2000 times.

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Cihat Öztürk

Cihat Öztürk

#Blockchain #Cryptoanalysis #Technicalanalysis #Miningsystems Energy Engineer — Economist(2) madenuzmani@gmail.com