2 years ago
Sat Jan 21, 2023 1:34pm PST
Ask HN: Is inflation-resistant stablecoin possible?
In page 92 of Messari's 2023 Crypto Theses, there's a paragraph stated that “As reserve currencies continue to inflate away purchasing power, we need new currencies that maintain their purchasing power. I believe we’ll get an inflation-resistant stablecoin in my lifetime. And it will be glorious.”

My understanding is that the author believed that inflation-resistant stablecoin is possible and well needed, but isn't inflation-resistant stablecoin impossible?

If the supply drops, inflation happens, every currency that can be used in trading is affected, included crypto coins.

On the other hand, if a crypto coin is not being traded, it's possible that its price wouldn't be impacted by inflation, then why would anyone need a coin that can't be traded.

My question is, how can an inflation-resistant stablecoin can possibly be designed?

comments:
add comment
loading comments...