What is "Inflation" in crypto?

Ever felt like you're playing a game of 'catch-up' with your crypto, even when prices are up? It's like finding more money in your pocket, but then realizing everything costs more, and it's often due to something called inflation in crypto.

Okay, imagine a pizza party 🍕 where everyone starts with one slice, representing our initial crypto supply.

In crypto, inflation means the chef keeps baking more pizzas, adding new slices to the total supply - often distributed to people helping the network, like validators on the Solana chain.

It feels exciting to receive new tokens, but what happens to the value of your original slice when there are suddenly many more?

🤔 The common mistake is not realizing your fixed number of tokens represents a smaller percentage of the overall pie.

Therefore, while getting new tokens seems like a win, the real impact depends on if demand can keep up with this growing supply!

If supply grows too fast, the individual value of each token you hold can go down.

It's not about how many tokens you own, but their percentage of the total supply!

The big takeaway?

Always check a project's 'tokenomics' - specifically its inflation schedule and how new tokens are distributed.💡

Knowing this helps you make smarter choices, seeing beyond just price movements! ✨

#CryptoInflation #Tokenomics #cryptoeducation

- Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.