I would like to know your opinion on this issue:
- Do you think the current inflation is a failure of Ethereum?
- Do you believe that this inflation will end soon and ETH will continue to deflate?
- Will you still invest in ETH even if it continues to be inflated?
1. This depends how we define the current inflation. If we consider it since the merge, it is -0.07% and remains deflationary (just). Granted in the past month it has also been +0.55% inflationary. So far this seems to be about as high as it has got, which is not major amounts of inflation, in fact it's still less than Bitcoin so shouldn't be a concern as of yet.
2. I'm not sure about returning to deflationary soon, but otherwise yes I believe it will begin to deflate again (even if only to wipe out the recent inflation). So far we have seen a clear trend of Ethereum being deflationary during uptrends (such as 2023) and during sideways or bearish it will no doubt continue to be inflationary.
3. Personally for me the inflation being between +/-1% doesn't change my opinion much. I'm just relieved that the difficulty bomb was resolved that previously led to very high inflation. It's also possible that during a full blown bull market would loose 1-2% of it's supply to the burn, and therefore becoming inflationary again for a year or two during another bear market wouldn't be an issue as would only be increasing the supply back to where it was. It's possible the future supply equilibrium will remain around 120 million, which also wouldn't be an issue if is neither inflationary or deflationary.