Part 7/9:
It's critical to understand that many cryptocurrencies possess inflation mechanics built into their frameworks. For instance, Bitcoin has a max supply of 21 million coins, yet new tokens still enter the circulation, which can affect value retention for holders. Other cryptocurrencies, like Solana, may experience rapid inflation, leading to unexpected reductions in token value despite similar price points over time.
To outpace the inflation of various digital assets, investors should look for cryptocurrencies with sustainable yield-generating frameworks, ideally securing high demand that offsets inflation. This approach can help mitigate the pressures of inflation while ensuring opportunities for regional and utility-based growth in the digital asset space.