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SOUND Money for an UNSOUND World / Aditya Das, Ep. 288

NZ Everyday Investor

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The Deflationary Aspect of Ethereum

Ethereum works on this sort of gas model which is depending on how busy or quiet the network is you paid a different transaction fee so there's a different transaction cost on a theme transaction. With each transaction a certain amount of eip is burnt that means it's destroyed and then supplies are being cut off to create deflationary activity. This goes with any kind of anything like in our economy if we're buying a kilogram of flour with our currency where there's more supply of that currency being created within that centralized system the goods that the currency buy will appear to increase in value. That should be the case assuming demand stays constant right?

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