Limited supply of BTC, unlimited supply of ETH, so ETH shouldn’t as worthy as BTC? What is and why $Burst?
BTC, ETH, BURST are generated through block rewards, BTC system has a max. supply of 21 million and is issued according to blocktime.
ETH is issued according to blocktime without a limit.
BURST blockchain has a max. supply of 2.1 billion with blocktime ~4min in avg.
The daily block reward of BTC is 6.25BTC/block * 10min/block * 6 * 24 = 900BTC.
The daily block reward of ETH is 2ETH/block *(60 / 13sec/block) * 60 * 24 = 13292ETH.
The daily block reward of BURST is 170BURST/block * 4min/block * 15 * 24 = 244800BURST.
Although ETH’s max. supply is unlimited, its issuance is limited by time. If time is unlimited, it is truly unlimited. And after shifting from Proof of work to Proof of stake, it will be valued without any physical base. While BURST is based on Proof of capacity which is greener, safer, faster, cheaper and more decentralized.
But for a short period of time, daily observation (inflation rate=block reward/circulating supply):
The inflation rate of BTC is about 900/ 18,594,200 = 0.0048% (1.75%/annual)
The inflation rate of ETH is approx. 13292/ 114,160,963 = 0.0116% (4.23%/annual)
The inflation rate of BURST is approx. 244800/ 2,112,797,150 = 0.0116% (4.23%/annual)
If you want to see whether a currency is cheap or not, you have to look at the market cap NOT THE PRICE. Some of you may know this already and you may have been factoring this into your analysis before reading this article. However, having spoken to many investors in the crypto space, I would say around 99% of people don’t factor in the inflation rate when looking at a currency.
( Read this for inflation vs price vs marketcap: https://steemit.com/cryptocurrency/@heavey/understanding-inflation-price-and-market-caps )
The circulating supply of ETH is a lot more than BTC, but it is not the difference between finite and infinite, it’s a difference of ~30 times that BTC price higher than ETH (price = marketcap/circulating supply). The fact that Bitcoin is one of the most expensive cryptocurrencies is actually partly a coincidence; It does have the most money invested into it but it’s also JUST AS IMPORTANT that it has a low supply compared to most currencies.
Meanwhile, The daily inflation rate of BURST 0.0116% (4.23%/annual) is as same low as ETH, and will goes down as the daily block reward decreases daily. So, it’s just matter of time that the market cap increases by even just a small amount, BURST price will make you profits.
Large companies started to invest tons of money in cryptos but BTC might not actually become currency, because most HODLs see it as an asset, so it’s just stupid to buy pizza by BTC. Don’t you dare to spend all HODLs? You can say that BTC is useless & nothing but it fulfilled the purpose “store of value”.
In contrast, for ETH & BURST, all on-chain operations require ETH & BURST. Most tokens & Dapp can operate on Ethereum or BURST Blockchain as a platform (e.g. Decentralized Exchange: BTDEX.trade ; Decentralized lotto: Cryptoball) . Therefore, ETH & BURST blockchain have practical use cases and has many more functions than BTC.
If investors begin to understand the reasons behind this (also Fundamental Crypto Asset Score FCAS), the price difference of several tens of times may be narrowed, esp. eco-friendly & decentralized open source platform BURST. This is also generally recognized by BURST community.
BURST might still not have the ultimate market cap like BTC or ETH, but Bitcoin’s cap hasn’t been stress-tested. As time passes, and issuance gets lower, people paying transaction fees will have to make up the difference, and nobody actually knows if that will happen. If it doesn’t, Bitcoin will be insufficiently secured for the value they protect and they will seek other valuable cryptos.
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