Inflation

Inflation is the term used to describe the rise in prices within an economy, leading to a decrease in the buying power of fiat currencies like USD, EUR, JPY, or GBP. One possible cause of inflation is the expansion of the money supply, usually undertaken by a country’s central bank. However, many cryptocurrencies employ a fixed policy that gradually reduces the circulation of tokens or coins over time, often with a predetermined maximum supply that cannot be surpassed.