• NecroSocial@lemmy.world
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    1 year ago

    Not all cryptocurrencies are deflationary. Yes the deflationary model encourages holding/discourages spending however for some projects this is a desired outcome based on the utility the coin/token is aiming to provide.

    Additionally deflationary crypto can act as a hedge against inflation, hyperinflation, and stagflation. The decreasing supply can counteract inflationary pressure caused by externalities like government policies and economic shake ups.

    • ZodiacSF1969@sh.itjust.works
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      1 year ago

      I think any hedge against inflation is countered by the extreme volatility most of them suffer from.

      Which cryptos are non-deflating BTW?