Difference between Inflationary and Deflationary Assets

in cryptocurrency •  2 years ago 

Inflationary-vs-Deflationary-Assets.webp

📈Many investors are looking for the top cryptos to buy and ride out the inflation period as safely as possible. History shows that some investors keep returning to cryptocurrencies to gain a safe hedge against investment.

🪙Some cryptocurrencies are innately inflationary, meaning the number of coins in circulation increases over time. Inflationary currencies have fixed supplies. Coins like Bitcoin are inflationary to a point.

📊Deflation is a term used in crypto finance to describe a drop in the value of an asset due to factors such as over-minting. Some crypto deflationary, as long as demand remains constant, the price of each coin will grow. One example of a deflationary currency is the Binance coin (BNB). Each quarter, the Binance cryptocurrency exchange destroys BNB to lower its supply until it reaches 100 million BNB.

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