Understanding Inflationary Bias in DeFi
Too Long; Didn't Read
DeFi users are drawing judgements or conclusions based on partial knowledge and limited samples (of tokens) The biggest bias here is that an increase in supply will collude sooner or later in a lower price, as you have more tokens they have less value/price, obviously. The second “rationale” is that a deflationary supply will bring price up no matter what happens, because less tokens will have more price. Finally, a fixed supply is usually identified, wrongly, with the Gold standard and with positive attributes of store of value and evergrowing price.