Is the Smart Money Now in Deflationary or Inflationary Crypto? Check Out Parody Coin (PARO) and Solano (SOL) Before You Decide.

With another dramatic drop in the cryptocurrency market, many investors will be checking their portfolios nervously this week to see how their chosen investments are performing. With the market in a volatile period, let’s examine whether it is better to invest in an inflationary project like Solano (SOL) or a deflationary crypto like Parody (PARO).

Solano (SOL) – A SOLid Investment

Solano (SOL) continues to outperform other altcoins and looks solid enough to weather this latest crypto storm. According to the latest report by CoinShares Digital Asset Fund Flows Weekly, over $108 million was poured into Solano (SOL) investment products this year, the most of any altcoin by a very long way, including the mighty Ethereum (ETH).

Indeed, the Solano’s (SOL) inflows from last week bring its year-to-date (YTD) net flows to almost $500 million more than the leading platform ETH’s YTD flows.

Solano (SOL) has cemented its place as a true goliath of the cryptosphere. Solano (SOL) has fail-safes built in that will protect it from high inflation rates that could throw a spanner in the works of many other crypto projects.

Solano’s (SOL) initial inflation is at 8%. However, this inflation rate will reduce by 15% every year until it rests at what the developers describe as its ‘long-term inflation rate.’ of 1.5%. This will hold, no matter what the current rate of inflation is within fiat currency or indeed other cryptocurrencies. Abiding by this inflation proposal, the total supply of SOL will hit 550,000,000 within the next two years.

Taking this into account, could Solano (SOL) be considered an anti-inflation crypto? The short answer to this is, no. An anti-inflation crypto, or deflationary coin, is one whose supply is decreasing. The supply of Solano (SOL) tokens is growing at a predetermined rate.

However even though it is inflationary, it has a fixed rate of inflation, so is not subjet to the obvious pitfalls of being connected to…

Read more at bitcoinist.com

Leave a Reply

Your email address will not be published.


*