Do cryptocurrencies experience inflation?

Cryptocurrencies have become increasingly prevalent in the modern financial landscape, prompting numerous questions surrounding their intrinsic nature. One of the most commonly posed inquiries revolves around the issue of inflation: do cryptocurrencies experience it? The traditional understanding of inflation involves a general increase in prices and a fall in the purchasing value of money over time. In the case of cryptocurrencies, the situation is rather unique. Most major cryptocurrencies, such as Bitcoin, operate on a decentralized ledger system known as a blockchain, which enforces a finite supply of coins. This means that unlike traditional fiat currencies, whose supply can be manipulated by central banks, the number of cryptocurrency units is predetermined and cannot be altered. Therefore, the question of whether cryptocurrencies experience inflation is a nuanced one, requiring a deeper understanding of their underlying mechanisms and economic principles.