What is Inflation?

Inflation refers to the rising of prices in an economy relative to actual value, which decreases the purchasing power of a fiat currency such as USD, EUR, JPY, or GBP. One potential cause of inflation is an increase in the money supply, which is typically executed by a country's central bank. Most cryptocurrencies follow a fixed policy that decreases token or coin circulation over time. These cryptocurrencies are often coded with a total max supply that cannot be exceeded.