The high inflation figures for altcoins like ZCash (ZEC) and XRP are providing yet another basis for the “bitcoin is king” argument.
Indiscriminate Dumping Hurting Altcoin Value
Tweeting on Friday (September 13, 2019), economic and crypto analyst, Alex Krüger highlighted the relationship between high inflation figures and poor price performance for certain altcoins.
Crypto inflation rates, as measured by @viewbasecom.
There is a disproportionate percentage of $ZEC and $XRP pouring into the market. No wonder these tokens are the worst performers of 2019, down 25% and 30% in dollar terms, respectively, in a year $BTC is up 2.7x. pic.twitter.com/NsNqykkVvK
— Alex Krüger (@krugermacro) September 13, 2019
Krüger’s tweet was based on figures published ViewBase — a platform that provides information on ‘coin’ dumps.
Whether by fixed or fluctuating schedules, altcoins like ZEC and XRP are showing significantly higher inflation figures. ZEC, for example, currently has an annualized inflation rate of more than 35%.
More than 7,000 ZEC tokens are ‘minted’ per day. This figure amounts to about 0.098% dilution of the circulating supply, much higher than cryptos with daily coin additions via mining.
Earlier in the year, Zcsh disclosed an inflation bug that was capable of creating an infinite number of tokens.
On the fixed inflation end of the spectrum, Ripple releases 1 billion XRP every quarter. XRP has an annualized inflation of close to 30%.
As previously reported by Bitcoinist, some XRP proponents have expressed displeasure with the constant dumping of the token by Ripple.
Earlier in the week, the company transferred 100 million XRP (about $26 million) to former CTO Jed McCaleb sparking fears of more sell-offs.