Inflation, Crypto, and GAMBL
Practically everyone has noticed the recent rise in prices, and inflation is a phenomenon that the crypto world is especially sensitive to. After all, Bitcoin was created at least partly in response to unfair and inefficient monetary policies.
The current financial climate is quite unfavorable, to say the least. But poor conditions and global crises like these are what crypto is designed to withstand. The real question is whether it will grow and thrive, or just merely survive. With that said, it is highly likely that cryptocurrencies will face much more scrutiny on their rate of emissions – now that the world has experienced the scourge of high inflation.
For GAMBL in particular, being a store of value is clearly not its primary use. Though it should be noted that it is designed to limit inflation as much as possible, likely even to the point of being deflationary at times. We cover this in more detail with our article on the burn mechanism and how it affects the GAMBL economy.
Many altcoins seem to have either forgotten Satoshi’s message, become overtaken by greed, or simply never really cared about it. They try to lure in users with increasingly high mining/staking rewards or other gimmicks that typically end up raising the effective rate of emissions and harming their most loyal supporters. Yet they’re largely just repeating mistakes that have been made by traditional monetary systems.
Meanwhile the two largest heavyweights in crypto, Bitcoin and Ethereum, are forging ahead in the other direction and reducing the rate at which new coins are minted. Over time they have diverged into radically different solutions which has become especially evident with Ethereum recently switching to proof-of-stake. Both have their supporters and their critics, though that whole debate is beyond the scope of this post and would probably fill a book or two.
Through all of the ups and downs, the good times and the bad, we shouldn’t lose sight of the concepts that crypto was founded on. Those of us here at GAMBL certainly haven’t.