As Ethereum Price Suffers, Investors Wonder If ETH Can Become Deflationary

Ethereum has not been left out of the onslaught currently happening in the market. The coin has lost over 2.4% in the last 24 hours and is now trading in the $1,700 territory as of the time of writing this article. The digital asset continues to dip as the crypto market continues to experience massive losses. Ethereum has now lost over 50% from its all-time high in April when the coin had shot past $4,000. Holders continue to remain bullish on the coin as upgrades promise new and exciting things in the future of the digital asset. The coin continues to experience growing anticipation in wait for the move to ETH 2.0. Related Reading | Ethereum 2.0 Contract Reaches 100,000 ETH Milestone But now a whole other question has arisen in regards to Ethereum, and that is if the digital asset will ever become deflationary. Unlimited ETH Supply Given the structure of Ethereum, it is not a stretch to say that the digital asset does not possess any hard cap. The network is structured that for every new block created, two ETH coins are produced. Then this means that as long as people continue to use the network, then more ETH coins will continue to be created. An unlimited supply of any currency or asset puts that asset or currency at risk for inflation. Thus, Ethereum’s model remains an inflationary one due to there being no cap on the overall supply of ETH. Related Reading | Ethereum Whales Go On Buying Spree, Top...