• @NecroSocial
    link
    01 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.

    • @[email protected]
      link
      fedilink
      11 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?