Crypto vs. Cash

Inflation is a complex phenomenon, but at its most basic, it occurs when the money supply grows faster than the economy. This results in prices rising and the purchasing power of cash falling. In recent years, we've seen cash become increasingly "trashy" as inflation has outpaced growth. For example, a cup of coffee that cost $1 in 2010 now costs $3. With cash losing its purchasing power, more and more people are turning to alternative investments like crypto.

Crypto offers a number of advantages when it comes to hedging against inflation. First, crypto is not subject to the same kind of Printing Press Economics that fiat currencies are. Fiat currencies can be (and often are) printed at will, which leads to inflation. Second, crypto assets are scarce and have a limited supply. This means that they are much less susceptible to inflationary pressures than fiat currencies. Finally, crypto assets are decentralized and global. This gives them a level of trust and stability that is unmatched by fiat currencies. For these reasons, crypto-assets offer a unique opportunity to hedge against inflation.