TOP 20 Bitcoins and Ethereums circulating supply inflation look healthy and organic.

Is crypto a good investment during inflation. One point that it is important to make about using cryptocurrency as a hedge. As a result of inflation a specific amount of currency will be able to buy less than before. Gold is traditionally a great investment during inflation and cryptocurrency is being used in the same way now.

They simply havent existed long enough for sound data. When cryptocurrency is accumulated for further resale for education a decent pension or elementary passive earnings any inflationary processes negatively affect purchasing power. The primary benefit of investing during inflation of course is to preserve your portfolios buying power.

Real estate is actually the ultimate hard asset and often sees its greatest price appreciation during periods of high inflation. This limited supply allows the cryptocurrency in question to act as a hedge against the inflation that is affecting fiat currency. This is especially true because as rents rise people become increasingly interested in owning as a way of getting the tax benefits that help offset the general level of inflation.

Most cryptocurrency is built with an inherent limit meaning they have a limited supply. But cryptocurrencies do have a few advantages over government-backed fiat currencies those not backed by gold or other real commodities. Calvo said the view that you can control the price levels of goods and services through money supply is not limited to the crypto world but shared by investors in general and for good.

The argument for investing in cryptocurrencies or gold amid inflation is that those assets are not damaged by the eroding value of cash. However both are highly volatile and shouldnt make up. Precious metals are traditionally considered to be a smart way to hedge against high inflation but can cryptocurrencies like Bitcoin and Ethereum also.

Alternatively if you cant or dont want to own the investment real estate yourself you could look into investing in real estate investment trusts REITs many of which can provide a return of anywhere from 2 to 8 or more depending on the REIT you invest in. The longer both networks have been live the lower is the inflation rate of their circulating supply. I would not recommend anyone invest in cryptocurrency without investing in Bitcoin.