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Surprisingly, monero remains a non inflationary asset

Mixed Opinions Surround Monero’s Inflation Resistance | Users Share Insights

By

Maya Thompson

May 15, 2025, 12:57 PM

Updated

May 17, 2025, 05:39 PM

2 minutes needed to read

The Monero symbol displayed with digital graphs in the background, representing a non-inflationary asset.

A growing coalition of forum users is defending Monero's non-inflationary status amid concerns over Bitcoin's inflation. Recent discussions reveal contrasting views on the inflation rates of these cryptocurrencies, igniting debates within the crypto community.

Monero’s Defined Supply Dynamics

Forum comments shed light on the complexities of Monero's supply. As one user highlighted, "Monero implements a defined supply of coins, with a tail emission starting after the defined supply has been mined." This design aims for extremely low inflation, approaching 0% forever.

Key Features of Monero’s Supply

  • Tail Emission: Starts post-defined supply, ensuring network security.

  • Deflationary Nature: Monero could be considered deflationary, compensating for lost coins over time.

  • Predictable Supply: Users can track inflation rates and total supply without ambiguity.

Varied Perspectives on Market Impact

User contributions reflect diverse opinions on Monero’s advantages versus Bitcoin’s attributes. One user countered concerns, stating, "The currency units are never calculated for total currency supply because this quantity is unknowable." Meanwhile, another expressed skepticism on Monero's inflation claims, saying, "I love Monero as much as the next guy but this is the lowest IQ take there is. With that logic a percentage of the total supply of USD is lost due to all sorts of accidents and mishap."

"However, a low inflation rate is necessary to replace lost coins in circulation," remarked another participant, highlighting Monero's strategic advantage amidst rising Bitcoin skepticism.

Institutional Influence and Market Landscape

The conversation also touched on the growing involvement of institutional players like BlackRock in Bitcoin investments. As one commenter noted, β€œThey know that innovative tech will reshape asset value.” This hints at shifting dynamics in the cryptocurrency realm and raises questions about long-term stability across platforms.

Key Takeaways

  • β–³ Monero's approach to supply fosters investor confidence in its stability.

  • β–½ Concerns about actual lost coins affecting other cryptocurrencies remain prevalent.

  • β€» "Gold is inflationary. Demand factors," one user pointed out, emphasizing different perspectives on value retention.

Future Outlook for Monero and Bitcoin

As discussions continue, some analysts predict Monero could see a surge in adoption as its benefits gain wider recognition, with estimates of growth up to 70% in the next year. Meanwhile, Bitcoin may grapple with retaining its market share unless it adapts to rising demands for privacy and security.

In a landscape where innovation is critical, both Monero and Bitcoin face unique challenges and opportunities. Can Monero capitalize on its advantages, or will Bitcoin's institutional backing sustain its dominance?