Inflation: The Insidious Thief | Kraken Blog

The concept of inflation is front and center again for many market participants, but not everyone is certain of what impact inflation will have on the crypto markets.

Many have speculated for years that bitcoin’s disinflationary nature would be its biggest boon in the face of an inflated U.S. dollar. As the world’s reserve currency, the dollar is uniquely tied to many international business transactions and investments. If the dollar does begin to feel inflationary effects, the costs of goods and services could begin to rise. 

The latest economic data has provided newfound fears of not only rising inflation, but inflation trending higher than expected. We explore if many of the disinflationary theories around bitcoin will hold true. 

In an effort to help market participants understand what inflation means for the global economy and its potential impact on cryptoassets, Kraken Intelligence has published a deep dive on the economic phenomena. 

In this report, you will learn:

  • What inflation is, why it is relevant and how it is measured
  • What assets are most influenced by inflation 
  • What steps can you take to protect your assets 
  • How governments and central banks may take action to mitigate the effects of inflation
  • How technological innovation can have deflationary effects

Many people have never felt the ramifications that inflation has on asset prices, commodities, real estate, financial markets and their spending power. Our report outlines the different types of hedges available to participants and analyzes how each could react in an inflationary environment. 

Inflation will affect different people or companies in different ways. You’ll learn in this report what impact inflation could have on scarce resources like bitcoin.

Download Our Full Report

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