Bitcoin is disinflationary, BNB truly deflationary, says analyst

Bitcoin is often touted as deflationary, but according to one analyst that is not entirely correct. The largest cryptocurrency is actually disinflationary: new coins are still being created, albeit at an increasingly slower pace. Current annual inflation is around 0.82%. For true deflation, the total supply of coins would need to shrink.

In brief:

• Bitcoin still creates new coins and is therefore disinflationary, not deflationary
• BNB is genuinely deflationary because no new coins are created and existing tokens are destroyed
• BNB actively burns tokens through quarterly burns and real-time transaction fees

BNB destroys tokens

BNB, by contrast, is genuinely deflationary. Binance Coin works completely differently: all coins were created at launch and no new supply is added. In addition, tokens are actively burned, so the total supply is constantly declining.

The 36th quarterly burn in July 2026 alone destroyed 1,615,828 BNB. This is a crucial difference from Bitcoin, whose supply grows slowly but never shrinks.

Real-time burning happens continuously

In addition to the major quarterly burns, BNB has another mechanism: BEP-95 real-time burning. A fixed portion of the gas fees of every transaction is automatically destroyed. Since its inception, this system has already removed more than 290,000 BNB from circulation.

This two-layer burning system makes BNB a unique form of deflation, with both mechanisms continuously reducing the supply.