The US dollar, USD, is one of the most influential currencies of all time. Most stablecoins are pegged to the real-time value of the US dollar, as the currency serves as an asset reserve.
In 2021, major currencies witnessed a rapid fall due to inflation and stagflation, primarily due to the pandemic and the government trying to handle the economic situation during that period. Inflation means a period where the value of a currency deflates while the price of commodities spikes.
Initially, Bitcoin (BTC) was proclaimed to be a hedge against inflation, as the coin increased in value faster than the USD and was not prone to market changes.
However, during inflation 2021, we also witnessed Bitcoin’s drastic drop and volatility alongside other contenders in the stock market, leaving analysts wondering what inflation’s effect on crypto is and if it was safe to think of crypto as a safe space.
Yet, certain tokens have defied the bad outcome of inflation, like Mehracki Token (MKI) and NEAR protocol (NEAR). Let’s see why.
Mehracki Token (MKI); A Deflationary Token
Mehracki Token (MKI) is an ecosystem powered by the DeFi token, MKI. MKI is also used for governance and authorizing transactions on the platform.
Mehracki’s (MKI) main motive is to ease the burden associated with travelling and tourism and to advocate for better mental health for both tourists and business owners. Through a partnership with service providers in the hospitality industry, MKI will become an accepted currency for payment, creating a unified and cheaper ecosystem for the industry and people involved.
In a further bid to create a community-governed platform, the MKI operates as a DAO. Users, rather than a selected few, determine which direction the platform moves along.
As anti-inflation crypto, Mehracki Token (MKI) is deflationary. Tokens are burned regularly, and as the number of tokens decreases, it becomes limited, causing an upward acceleration in its price and value.
NEAR Protocol (NEAR): Speed And Scalability
NEAR Protocol (NEAR) is a layer- 1, open-source blockchain solution that operates on a proof-of-stake algorithm. The protocol uses a block generating scheme called Doomslug to effect more transactions per second with faster term-to-finality.
Doomslug uses a sharding variation known as Nightshade. Instead of having to verify all previous blocks, it saves time by verifying only a fraction of past blocks, hence promoting scalability and minimizing congestion on the network.
NEAR uses readable human names instead of randomly generated addresses, making its ecosystem more secure for high-grade assets and easy to use by everyone.
To allow compatibility between users on the network and Ethereum, the NEAR Protocol (NEAR) introduced Aurora, an EVM (Ethereum Virtual Machine), with a Layer 2 solution. This helps developers run dApps built on Ethereum, on NEAR without starting from scratch.
A large percentage of transaction fees are burned, making it anti-inflation crypto, and a perfect hedge against the threat of hyperinflation in the economy.
Is inflation good or bad for crypto? While inflation affects mostly fiat currencies and a few other stores of value, crypto has been a way to avoid losing out on a lot. These tokens, with their plan of having only a set number in the crypto market, answer the question.
If there isn’t an oversupply issue, inflation merely lends an advantage to crypto. Although, now would be the best time to get involved with them.
For further information on Mehracki Token (MKI);
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