I doubt that there is an opposite conclusion possible that the market performance is positive due that high inflation rate.
I made for the last year x calculations versus Bitcoin and the main factor on these is the inflation rate of ZEC and i several times have predicted the price levels that ZEC versus BTC will reach. While this is of course no proof it’s at least an argument that the inflation plays a huge role, even i agree it’s not the only one. But actually it’s simple mathematics, especially versus BTC.
It’s a vicious circle we are in.
There since the bear winter no incentive to hold ZEC as it’s clear that it will fall further.
It’s obvious that there is more supply than demand. Don’t be fooled by the fake volume a lot of exchanges report and even this is not really a demand.
The only thing that could counter the current inflation would be creating at least the same or more demand, obviously you guys struggle with that and it’s mission impossible the next years as it seems.
Actually that’s the biggest flaw of Zcash. I wonder why no economist analysed this in 2016. Actually it’s exactly BTC and the same inflation rate of BTC that ZEC has that got us into the vicious circle:
With our high inflation we have to competete, yes, we compete against BTC because it’s a fight for investors. There is no incentive to hold ZEC if it losses daily to it’s totally wrong choosen copy pasted BTC inflation rate. BTC sucks all up and makes BTC even stronger day by day making many Alt’s including ZEC lossing more and more. I could write some more pages but nobody would read it than again.
What amazes me are the following things:
Why didn’t an economist analyse the supply curve prior to ZEC release. But ok, done is done.
The inflation rate hurts not only investors, actually it hurts the 20% founders reward and will hurt the a possible 20% new dev fund. I find it amazing that even such proposals or suggestions like this aren’t even considered, researched, whatever.
By now 3 years have past with this rediclious high inflation rate. Don’t you guys/girls at least analyse things why we find ourself that low price wise? Sure, there are some minor other issues as well, but that’s just the main reason combined with the of course low demand. If you can’t help increase demand, lower supply, there is just no other option for the next years, easy and simple as that.
Just out of curiousity. If the ECC gets a new, let’s say 10% dev fund (for both ECC/ZF) and the price falls down to $25 (absolutly possible!) or even at a lower price level around $15 which is more unlikely but still possible. Are you still that relaxed at these levels?