The deflationary aspect isn't speculated to kick in until after the merge to PoS when the issuance drops significantly.
Regardless, I don't believe it will be deflationary long term. It will likely just last a year before it reaches an equilibrium.
Regardless, I don't believe it will be deflationary long term. It will likely just last a year before it reaches an equilibrium.
Basically every random walk down the timeline leads to 100% of coins lost in the course of time.
This is of course separate from the decrease in rate of supply creation.
By time eth came out though everyone was much better about backing up wallets you thought would be worth nothing.
Rather, I believe it will result in the remaining 20% being held by a few exchanges, whose endgame will be to still charge the fees but just balance them internally without actually costing anything.
Friendly note that money supply is only correlated to whether a currency is inflationary or deflationary. Over the past weeks, for instance, Bitcoin has been inflationary--its purchasing power dropped.