this post was submitted on 20 Aug 2023
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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.
I think any hedge against inflation is countered by the extreme volatility most of them suffer from.
Which cryptos are non-deflating BTW?