- USD
- $0.1000USD
- Biznotes
- 162
Since crypto currency will have value only when it is pegged with fiat currency (1 bitcoin will not have any value until it gets USD value), bitcoin and other crypto currencies are also prone to inflation
The cryptocurency involvment in the exchange market has a significant effect in curbing inflation in that the purchasing power can increase while the cryptocurency remains constant compare to the fiat currency.This is like a peg against devaluation.Inflation, as we know, represents a serious economic problem for everyone. With its increase, on the other side, our purchasing power decreases!
However, the cryptocurrencies, having an emission limit (in the case of Bitcoin, no more than 21 million units), could therefore counteract the phenomenon of inflation.
This concept, dictated by the fact that the presence of a stable cryptocurrency would allow us to change our savings, in order not to suffer a loss in value.
The use of crypto currency in doing transaction and exchange of resources for services or products will go a long way to mitigate the effect that inflation might bring, one way is if our investment is in a stable coin. This will prevent undue fluctuations in the value.Inflation, as we know, represents a serious economic problem for everyone. With its increase, on the other side, our purchasing power decreases!
However, the cryptocurrencies, having an emission limit (in the case of Bitcoin, no more than 21 million units), could therefore counteract the phenomenon of inflation.
This concept, dictated by the fact that the presence of a stable cryptocurrency would allow us to change our savings, in order not to suffer a loss in value.
That is just a fact about the whole essence of the cryptocurency trading market,because whichever way it goes,one can just decide to keep his money in stable coin,because that in itself a safer option than just keeping it with other coin value tag.Personally, I believe that investment in cryptocurrencies can guard against inflation. Very true.
Instead of leaving your money in the bank, save it as cryptocurrency (Bitcoin). You'll never go wrong with that. Especially if you are from a country whose currency keeps devaluing.
Sometimes when you purchase even from local retailers they accept Coinbase payments by scanning QR codes and getting your merchandise means do even need to convert to fiat currency.Since crypto currency will have value only when it is pegged with fiat currency (1 bitcoin will not have any value until it gets USD value), bitcoin and other crypto currencies are also prone to inflation