Bitcoin (BTC) has revolutionized the world of finance by introducing capped supply inflation for a digital asset for the first time in human history. Since then, thousands of cryptocurrencies have risen with different supply inflation dynamics. Crypto prices depend on both supply inflation and market demand. A high demand for a limited supply causes the price to rise against other currencies. That’s why we asked the AI to choose the 3 coins with the lowest supply inflation.
3 cryptocurrencies with the lowest supply inflation
We resorted to a GPT-4 API bot to calculate the annual supply inflation of cryptocurrencies. Moreover, the ChatGPT bot offered a list of some of the lowest rates among the most well-known decentralized coins in the space.
Next in line is Nano (XNO)
The first choice is Nano (XNO), which has an annual supply inflation rate of 0%. The circulating supply of this cryptocurrency is 133.24 million XNO. It has a market cap of $93.27 million at current prices ($0.70). Notably, all Nano units created in the genesis block are already in circulation. This means there is no supply inflation for this low-cap cryptocurrency. However, the Nano has not seen consistent demand growth since November 2022. XNO lost 11.4% of its value in a year despite having the lowest supply inflation in the crypto market.
The above result for NANO proves the importance of increased demand for appreciation, where any meaningful growth could trigger an uptrend due to the lack of extra selling pressure.
The second ranked cryptocurrency: Monero (XMR)
ChatGPT-4 ranked Monero (XMR) as the cryptocurrency with the second lowest supply inflation. Monero implemented a tail emission of 0.6 XMR per block in May 2022. Considering a new block is mined every two minutes, 423 XMR is mined daily, resulting in 157,680 XMR being added annually to Monero’s circulating supply. This results in an inflation rate of 0.86% for the 18.35 million coins in circulation at the time of writing. Monero was trading at $158 per token in November 2022. Currently, it is changing hands for $169 with an annual gain of 6.96%. This shows that the demand for privacy-focused cryptocurrencies is increasing despite supply inflation.
Finally, there is the leading cryptocurrency Bitcoin (BTC).
Bitcoin, meanwhile, has the largest supply inflation among these three ChatGPT-4 selections but is still one of the cryptocurrencies with the lowest annual rates on the market. With current emissions of 6.25 BTC per block every 10 minutes, 900 BTC per day enters the circulating supply. By the end of 2023, 328,500 BTC will enter circulation in 365 days. That’s an annual inflation rate of 1.68% on the current circulating supply of 19.53 million BTC ($678.14 billion market cap). Interestingly, Bitcoin has experienced a huge increase in demand within a year. Thus, it recorded a 64% gain, reaching $34,723 from $21,150. Moreover, supply inflation will halve in 2024 as the block subsidy will be halved.
However, it is important to say that if BTC reaches its all-time high market cap, Bitcoin will be trading at $66,666. This is a 3.44% lower price than the ATH price of $69,045 at the same market cap in 2021. As you can see, having good supply fundamentals is not enough for medium-term positive results in the market. Whether for speculative or beneficial reasons, demand plays an important role for cryptocurrencies.
To be instantly informed about the latest developments, contact us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!