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How crypto helps you save or hedge against inflation

Crypto can help you save or hedge against inflation in a few key ways, though it also comes with risks. Here's how it works:

1. Limited Supply Assets (e.g., Bitcoin)

Bitcoin has a fixed supply of 21 million coins, meaning it can't be inflated like fiat currencies.

This scarcity can make it a store of value, similar to gold—often referred to as "digital gold."

If a currency like the USD loses value due to inflation, Bitcoin may hold or increase its value in comparison.

2. Decentralized Finance (DeFi) Yield Options

Crypto savings platforms or DeFi protocols may offer higher interest/yield than traditional banks.

By earning yields in stablecoins or crypto assets, users may outpace inflation.

3. Access to Stablecoins

Stablecoins (e.g., USDC, USDT, DAI) maintain a 1:1 peg to fiat currencies but can be used globally.

In countries with hyperinflation, people often move their money into USD-backed stablecoins to preserve purchasing power.

4. Global Portability

Crypto is borderless, so it lets people in high-inflation economies move their wealth into more stable assets or economies.

That said, crypto prices can be very volatile, so while it might help hedge against inflation, it's not risk-free. Want an example of how someone in a high-inflation country might use crypto to protect their savings?