One may ask is inflation a good thing? The answer to this is “Yes” and “No” in one way and opposite.
The real question is why did the prices go up in first place. If it were because of unreasonable money printing policy or if it is in a debt-based economy that people keep borrowing more money to spend hence increasing the demand the prices, then the answer is always a big fat NO.
The question now is does it mean that cryptocurrency free from inflation or will the price of cryptocurrencies just keep soaring high and high?
It depends on what cryptocurrency you are talking about. We have 3 types:
1. Centralized gov-coins or CBDC which is the same exact thing as fiat
2. Altcoins with unlimited supply, or altcoins with no actual utility which will lose value because of uselessness or their unlimited supply
3. Bitcoin that both has utility and a limited supply making it deflationary.
So bitcoin is not totally free from inflations but it’s controlled.
The thing about inflation is that price goes up (fiat loses value and goes down) because of the very basic supply and demand rule. They print more money > supply of money grows + demand remains the same or drops due to increasing price of everything > value of money drops.
When it comes to bitcoin you it is true that the supply is increasing but supply alone doesn't create the final value it is supply + demand and since bitcoin adoption is growing at a faster pace than the supply increase, its value goes up.
stable coins has been an alternative to the versatile nature of cryptocurrencies compared to the fiat currencies.
Stable coins have never been any good and this will never change.
They are tied to fiat so they are just as inflationary and terrible.
They are also issued and controlled by a centralized company that makes them Extremely risky to use.
