What Makes Deflationary Tokens a Preferred Choice in the Crypto Market: A Case Study of CET’s Repurchase & Burning Mechanism

In the crypto market, though most cryptocurrencies share similar underlying technologies, they are designed based on different economic models known as tokenomics. To be more specific, some cryptos feature a supply that increases over time, while some others have a fixed supply. Yet, a minority of cryptos come with a diminishing total supply that looks deflationary. Such tokens are referred to as deflationary cryptos. We all know that some cryptos with a fixed supply, such as Bitcoin, are generally deflationary by default. Most members of the Bitcoin community reject inflation because it often represents a loss of value. For instance, a real-world currency issued by the government often controls the entire financial system of the country. If a government frequently issues a large supply of currency via the central bank while setting low interest rates and buying a huge amount of foreign bonds, the country will be prone to a credit crisis and even worse an economic depression. Before publishing the BTC whitepaper, Satoshi Nakamoto had noticed that real-world currencies issued by the government are subject to inflation, which inspired him to develop an alternative store of value that’s similar to precious metals but is achieved digitally. Bitcoin’s flexible mining difficulty and mining reward mechanisms help it suppress inflation. Meanwhile, the unique design of Bitcoin continues to drive up its value. It should be noted that Bi...