Dogecoin Annual Supply Inflation


As you can see in the graph, Dogecoin inflation keeps dropping year after year. 5 billion coins per year are added but as years pass the % inflation keeps dropping when compared to mined doges. In contrast, USD Dollar inflation keeps rising.

As Elon Musk points:

Doge appears to be inflationary, but is not meaningfully so (fixed # of coins per unit time), whereas BTC is arguably deflationary to a fault.
Transaction speed of Doge should ideally be a few orders of magnitude faster.
— Elon Musk (@elonmusk) February 8, 2021

The next info is Copy pasted from Reddit user: /u/Adventurous_Piglet85 from: https://www.reddit.com/r/dogecoindev/comments/ljr758/i_did_not_get_an_answer_anywhere_please_let_me/gnfykkf?utm_source=share&utm_medium=web2x&context=3

Approximately 600,000 dogecoins are produced per hour and 5,256,000,000 (5.26 billion) per year and there are currently approximately 128,000,000,000 (128 billion) Dogecoin. Now let’s compare this information to what we know about Bitcoin. Bitcoin currently has a supply of 18.5 million. Currently 900 Bitcoin are mined per day or 328,500 per year. 

However, unlike Dogecoin, Bitcoins mining rate is not fixed. Bitcoin has something known as a Bitcoin halving which means at some point in the future instead of 900 per day being mined 450 are mined. Now let’s compare Dogecoin and Bitcoin to the US Dollar. The US Dollar has an estimated paper money supply (more on this covered in a later section) of approximately (1.2 to 2 trillion) and in 2019 the federal reserve printed 188.3 billion paper dollars. This means that there is 10 times more supply of dollars to Dogecoin and the government prints 37 times more dollars than Dogecoin is mined per year.

 It is also important to note that this increase in supply of Dogecoin is fixed. It never changes. The federal reserve can change how much they print any given year. Many people think that this means that the supply of Dogecoin is infinite or infinitely increasing. That is not true in the span of our life time. It will take approximately 24 years for the supply of Dogecoin to double and it will take 360 years for the supply of Dogecoin to reach the current supply of the US Dollar. That’s without taking into account the fact that federal reserve adds more dollars each year than Dogecoin adds to its supply each year. 

Technically speaking the supply of Dogecoin will eventually reach infinity if given enough time but you have to remember that infinity isn’t an actual number. You can’t mine “infinite” dogecoin because infinity isn’t a number. It’s a mathematical concept to describe something that is boundless. 

Dogecoin doesn’t have a boundless increase. It has a fixed increase a set amount added at a specific interval. So in practical terms for the purpose of using Dogecoin as a legitimate currency, this infinite argument against Dogecoin doesn’t matter. In fact it’s actually way better than Bitcoin at exchanging goods and services because of this fact. That is why the price per Bitcoin is 40,000 dollars and the price per Dogecoin is .07 with a realistic possibility of only reaching $288.60 at current market conditions. 

That is why it costs .00012 Bitcoin for milk but only 50 Dogecoin for that same commonly traded commodity. That’s why Bitcoin will be treated like digital gold. That is why Dogecoin will be considered the next dollar. The price per coin are inherently different because their supplies are different.

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