Ethereum may present safest hedge against inflation

Ethereum (ETH) may be a better store of value than its more popular rival Bitcoin (BTC), according to a new report by researchers from the University of Technology Sydney, Australia.

Th report said ETH is on track to become the world’s first “deflationary currency”, which means that anyone looking to ward off inflation might be better off investing part of their assets in ETH holdings.

The report factors in the EIP-1559 upgrade which is what prompted researchers to believe that the currency is better than BTC, for example, where the price is still tends to see-saw.

The upgrade came with a mass burn of ETH, one million to be precise from the then-circulated 118,583,580 tokens.

The transaction fees that have weighed down the community are also being dealt with thanks to EIP-1559. This means that the rate of ETH creation may stay consistent.

“Annualizing the rate of Ethereum creation since EIP-1559, the expected increase in the total Ethereum supply is only 0.98%, being less than half the 1.99% increase in Bitcoin supply which is almost certain in the same period”, the report said.

Because of these perceived inflationary qualities, ETH is now touted by the researchers as a better store for people’s wealth.

So far, BTC has been the most talked-about currency when it comes to fighting inflation, often with showy headlines like “Inflation Will Wreck You, Bitcoin Will Save You”. While the currency has been around and has been the go-to response to inflation, it seems a better alternative may be here.

The research touts ETH as a safer way to hedge against inflation, although this is yet to be put to a long-term test.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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