High Inflation Figures Explain Why ‘’Bitcoin Is King’’ Above Others

The high inflation figures that we get from the latest analysis show that XRP and ZEC clearly show why ‘’Bitcoin is King’’ above other altcoins. Let’s read some more details in the coming altcoin news below.

According to the tweets on Friday, the crypto and economic analyst Alex Kruger pointed out that the relationship between the high inflation figures and poor price performance of some of the altcoins. Kruger explained that he based his statement on the figures that were published on ViewBAse which is a platform that provides information on ‘’coin dumps.’’ Whether by fluctuating schedules and fixed schedules, the altcoins such as XRP and ZEC are showing significantly higher inflation figures. ZEC, for example, has an inflation rate of more than 35 percent. More than 7,000 ZEC tokens are ‘minted’ per day and this figure amounts to about 0.098% dilution of the circulating supply which is much higher than other cryptos with daily coin additions. Zcash even disclosed an inflation bug earlier this year that was capable of creating an infinite number of tokens.

Regarding fixed inflation, Ripple releases 1 billion XRP every quarter. XRP has an annualized inflation of more than 30 percent. As previously reported, some of the XRP proponents have expressed huge displeasure with the constant dumping of the token. Also, earlier this week the company transferred more than 100 million XRP to the former CTO Jed McCaleb and immediately spiked fears of a massive sell-off.

For bitcoin, this situation is slightly different. The top-ranked cryptocurrency has an inflation rate of 3.97%. After the 2020 halving event, the figure will be split in two and will take the inflation rate of bitcoin even lower than the current interest rate by the Federal Reserve. Compared to the Bitcoin’s inflation figures, the altcoins such as ZEC and XRP seem like coins whose value is constantly declining. Bitcoin is up by more than 170% since the year started while XRP and ZEC moved over 25 percent in the opposite direction as we saw in the latest cryptocurrency news. In the meantime, the commentators are calling for a new all-time high for Bitcoin before the year ends.