# Inflation Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Inflation", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Vitalik May Not Realize That Ethereum's Transition to PoS Actually Buried a Financial 'Hidden Bomb'

After transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS), Ethereum introduced staking rewards for ETH, creating a "maturity mismatch" arbitrage opportunity with Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs). This led to leveraged lending, recursive borrowing, and yield arbitrage on platforms like Aave, becoming a major DeFi use case—similar to traditional finance’s reliance on arbitrage. However, this arbitrage does not generate additional liquidity or value for the Ethereum ecosystem. Instead, it creates persistent selling pressure, as institutions cash out their staking rewards. This dynamic forms a delicate balance between sell pressure, ETH buy demand, and deflationary mechanisms. Unlike traditional banking, where maturity mismatch helps transform savings into productive capital (e.g., long-term loans funding economic growth), DeFi’s version is purely speculative. Institutions engage in recursive staking—staking ETH via Lido to get stETH, using it as collateral on Aave to borrow more ETH, and repeating the process—amplifying staking yields without contributing to real economic activity or dApp development. This套利套利behavior essentially exploits Ethereum’s security budget. With over 34 million ETH staked—far exceeding the estimated 15 million needed to resist state-level attacks—the network experiences "excess security." Post-Dencun upgrade, with reduced gas fees and renewed ETH inflation, the selling pressure from staking rewards structurally suppresses ETH’s price. ETH’s staking yield, currently around 2.5%, trails behind U.S. Treasury yields, making ETH a less attractive asset institutionally. The rise of Real-World Assets (RWA) on-chain could create external demand, potentially boosting ETH’s value, but for now, the PoS shift has turned ETH into a perpetual bond with negative yield spread versus Treasuries, posing a financial risk rather than fostering organic growth.

marsbit12/31 04:23

Vitalik May Not Realize That Ethereum's Transition to PoS Actually Buried a Financial 'Hidden Bomb'

marsbit12/31 04:23

Fed Meeting Minutes: 'Most' Officials Expect Further Rate Cuts Appropriate After December, Some Advocate Holding Steady 'For Some Time'

Federal Reserve December meeting minutes revealed a significant internal divide on interest rate policy. While a majority of officials supported the recent 25-basis-point rate cut and believed further cuts would be appropriate if inflation continues to decline as expected, a substantial faction advocated for pausing rate reductions "for some time." This group expressed concerns that progress on inflation had stalled and emphasized the need for greater confidence that inflation is moving sustainably toward the 2% target before easing policy further. The discussion highlighted a careful balancing of risks. Most participants viewed the shift to a more neutral policy stance as necessary to prevent a potential severe deterioration in the labor market, with many noting that tariff-related inflationary pressures had diminished. Conversely, several officials warned of the risk that high inflation could become entrenched, cautioning that additional rate reductions amid elevated price data might be misinterpreted as a weakened commitment to the inflation target. All participants agreed that future policy decisions will not be predetermined and will remain highly dependent on incoming data, the evolving economic outlook, and the balance of risks. The minutes also noted that reserve balances have declined to ample levels, and the Committee will conduct purchases of Treasury bills as necessary to maintain an ample supply of reserves.

marsbit12/31 03:23

Fed Meeting Minutes: 'Most' Officials Expect Further Rate Cuts Appropriate After December, Some Advocate Holding Steady 'For Some Time'

marsbit12/31 03:23

Bitcoin's Post-Halving Supply Change Is Permanently Locked by Mathematical Rules

The fourth Bitcoin halving occurred on April 20, 2024, at block height 840,000, reducing the block reward from 6.25 BTC to 3.125 BTC. This event, programmed into Bitcoin’s protocol and triggered automatically every 210,000 blocks, reinforces its deterministic and transparent monetary policy. Post-halving, daily Bitcoin issuance dropped by approximately 50%, from about 900 BTC to 450 BTC, with annualized issuance falling to around 164,250 BTC. This reduced Bitcoin’s annual supply inflation rate to roughly 0.83%, lower than gold's estimated 1–2% growth and contrasting sharply with central bank-controlled fiat systems. By the end of 2024, approximately 19.7 million BTC were in circulation, leaving fewer than 1.3 million left to be mined. Over 93.8% of the total supply has already been issued. The halving also shifted miner economics, significantly increasing the proportion of transaction fees in their total revenue. This aligns with Bitcoin’s long-term design, where security gradually transitions from block subsidies to fee-based incentives. Unlike traditional monetary systems, Bitcoin’s supply schedule is fixed, irreversible, and independent of market conditions. The next halving, expected around 2028, will further reduce the block reward to 1.5625 BTC. With the latest halving complete, Bitcoin’s low issuance rate is no longer a short-term event but a permanent baseline feature—verifiable, predictable, and enforced by code and consensus.

marsbit12/28 14:49

Bitcoin's Post-Halving Supply Change Is Permanently Locked by Mathematical Rules

marsbit12/28 14:49

活动图片