Inflation

Inflation is defined as an increase in the relative value of prices in an economy, which reduces the purchasing power of a fiat currency such as the USD, EUR, JPY, or GBP. An increase in the money supply, which is typically carried out by a country’s central bank, is one potential cause of inflation. Most cryptocurrencies adhere to a set policy that gradually reduces token or coin circulation. These cryptocurrencies are frequently programmed with a maximum total supply that cannot be exceeded.