Forgive my ignorance here, but I'm not sure I understand this graph. I'm not a math genius or economics genius, but I thought inflation was a rise in prices due to an increase in the money, which is obviously not what we see graphed here. How is inflation defined in this graph?
Inflation in this case is the increase in the supply of money (sometimes called money supply inflation).
At the point where the graph indicates 10% it means the money supply is growing at 10% annualized rate at that point in time.
It is sometimes useful for people to be specific (price inflation vs money supply inflation). Obviously both "sides" believe their definition of inflation is the right one but it always leads to confusion and/or fights. If everyone simply used the terms price inflation or money supply inflation it would always be clear.
I agree with your statement that increase money supply will lead to increase inflation but in fiat currency we have central authority who can control the money supply rate to control inflation but in crypto who control supply, we people . On simple we way we can see in graph when block size increase than inflation also increase because bitcoin mining is on peak level and supply of coin increase year by year, After mining 21 millions btc what will be the inflation rate ?
