‘Inflation’ is a word that is being spoke about a lot at the moment, but what does ‘inflation’ actually mean? Inflation, for economists, means too much money chasing too few goods and services but, in practice, it means a decline in the purchasing power of any given currency over time. During periods of inflation, the value of currency declines while the value of assets increases. In other words, the purchasing power of your currency declines. As inflation is rising right now, we can see this equation play out as both Bitcoin and Ethereum crash while Chronoly (CRNO) continues to climb.
Bitcoin (BTC) is not a hedge against inflation
Bitcoin has long been touted as a ‘hedge against inflation. In other words, crypto enthusiasts and Bitcoin promoters insisted that it was immune to the kind of inflationary devaluations that, throughout history, have dogged fiat currencies. However, this claim has turned out to be untrue.
This month Bitcoin fell to just over $22,000 in value, down a whopping 67% from November 2021. And there’s a good explanation for it: the vast majority of cryptocurrencies lack any intrinsic value. They are essentially worth what their owners claim they are worth, which is a prime illustration of the “Greater Fool Theory,” as it is called in the financial world.
Ethereum (ETH) is also inflationary
As with Bitcoin, Ethereum lacks any inherent value and, from time to time,it is only worth what its owners say it is worth and it has turned out to be far more prone to external market factors, such as inflation.
As of the time of writing, the price of Ethereum is $1,189.62. Ethereum’s market capitalization now stands at just over $141 billion. If you look at the picture over this year, it makes for a grim vista, with the price of ETH has fallen almost 70% in that time. That’s a pretty sobering and dramatic decline in purchasing power. Of course, the general crypto market crash is playing a role here but there’s no doubt that inflation is exacerbating it.
Chronoly (CRNO) is not like the rest
In times of inflation, prudent investors want to limit their exposure to currencies and maximize their holdings in real assets, the value of which are increasing. That’s exactly what Chronoly provides. Buyers get the opportunity to fractionally invest in rare and luxury watches that appreciate in value over time such as they would be buying shares of a company. This means that Chronoly (CRNO) is backed up by the rising value of real, desirable assets. Consequently, holding CRNO means that you have an asset that will increase in value as others fall.
Chronoly (CRNO) is just not like other cryptocurrencies in that its worth is based not merely on what its users say it is worth. Chronoly CRNO is actually the hedge against inflation that other “fiat” cryptocurrencies claim to be but actually are not. The current price of Chronoly is $0.06 which represents a 500% increase on the $0.01 value that it started with when the presale was launched in early May 2022. While other tokens flail around, expect the CRNO price to keep rising.
Presale: https://presale.chronoly.io/register
Website: https://chronoly.io/
Telegram: https://t.me/Chronolyio
Twitter: https://twitter.com/Chronolyio
For publishing articles on our website get in touch with us over email or one of the accounts mentioned below.
Source: https://www.thecoinrepublic.com/2022/06/28/bitcoin-btc-and-ethereum-eth-crash-as-result-of-inflation-chronoly-crno-skyrockets/