İnflation effect on crypto

Definition. Inflation is the process by which a currency like the dollar or Euro loses value over time, causing the price of goods to rise . Bitcoin (and some other cryptocurrencies) are designed to experience predictable and low rates of inflation.

Crypto’s crash shows digital currency is not a hedge against inflation . Crypto might not be a great hedge against 7% inflation. New technology is upending everything in finance, from saving to trading to making payments.25 Oca 2022

But some other cryptocurrencies have gone a different way. Ripple made XRP, its native cryptocurrency, deflationary through a different process. The Ripple company released the entirety of their XRP (100 billion) when they first began.

Using the common definition, Bitcoin is deflationary because Bitcoin’s purchasing power increases over time.