More like 2-4%: http://www.usinflationcalculator.com/inflation/historical-in...

I'll grant 5% is a tad high, but it's the right order of magnitude.

> it's the right order of magnitude

Probably even closer when you consider that cryptocoins suffer much more "loss" than USD does. People lose wallets, get hard drives wiped, etc., which are deflationary events that partly counter any built-in monetary inflation. Whereas losses of USD due to things like setting bills on fire or losing them in a lake amount to a miniscule portion of total USD outstanding.

Imo it's even plausible that Dogecoin's current loss rate is >5%, in which case the currency would still be deflationary even with the new coins being added.

>Whereas losses of USD due to things like setting bills on fire or losing them in a lake amount to a miniscule portion of total USD outstanding.

The Bureau of Engraving and Printing redeems partially destroyed or badly damaged currency as a free public service.

Every year the U.S. Treasury handles approximately 30,000 claims and redeems mutilated currency valued at over $30 million.

http://www.moneyfactory.gov/uscurrency/damagedcurrency.html

When banks sit on money and refuse to make loans, or people stuff dollars under the mattress, that has a short-term deflationary effect, for as long as the money is locked up.

You need >50% of a bill for them to redeem it, though.

On average about 3% a year.

That's the "rule" I was always taught anyways.

some years it has been over double 5% a year.

http://www.usinflationcalculator.com/inflation/historical-in...

We have been lucky to have low inflation for the last several years. My mom was trying to establish her adult life during the double digit inflation of the late 70s early 80s and talks about how hard it was and how high the interest rates were.

5% is pretty steep. The rate's been relatively low for the last couple years. In 2007, it went over 4%.

http://usinflation.org/us-inflation-rate/

Bitcoin went from 10.7M to 12.3M in the last year. That's 15%. But of course it deflated quite a lot in that time due to rising demand.

Doge will add 5% to the total supply in the first year, but that will be less every year -- it's a fixed number, not a fixed percent, assuming the title of the your OP is correct. (Not sure about this.)

Of course, that doesn't account for lost coins. Given how doge is used, I am sure a lot of the new coins will actually be replacing lost coins.

It's only 5% the first year. Since it's a flat amount, the % of the inflation would reduce every year.