A debate arose about the possibility of Ethereum becoming hard money and ended up highlighting more downsides to the digital asset than anything else.
The founder of a Bitcoin investmentsCharles Edwards, shared a chart that showed the circulating supply activity of Ethereum and Bitcoin and argued that “Ethereum has entered the hard money game. For the past 3 months, Ethereum’s inflation rate has been lower than Bitcoin.”
“Hard money is not only about low inflation of supply, it is also about immutability of inflation – oil is not suddely hard money even when OPEC decides that supply rates are throttled.”
-Twitter user @alpha_authority
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Hard Cash Or Hard Fees?
In the short history of the cryptocurrency boom, many have debated the possibility for cryptocurrencies to surpass fiat currencies at some point. It is a feasible future scenario for Bitcoin, but other digital coins can only dream of it.
As Investopedia explains, “Hard money maintains a stable market value relative to real goods and services and a strong exchange rate relative to foreign currencies,” and its uses involve “lower transaction costs and risks”
In the case of cryptocurrencies, hard money would mean that a certain coin could not be subject to arbitrary modification. Opposite to Bitcoin, Ethereum’s rules can be –and have been– changed. Its supply schedule has been modified more than once, which indicates it can keep changing.
The burnings of ETH make it…