Is XRP A Better Hedge Against Inflation Than The US Dollar?
The US dollar index (DXY) has fallen by more than 10% year-to-date. Ripple’s XRP token, on the other hand, has seen a price increase of 4.81% year-to-date. XRP’s price even breached the $3 mark earlier this year in January before facing a dip. Many expect XRP will prove to be a better hedge against inflation than the USD. Why XRP Could Be A Better Hedge Against Inflation Than The US Dollar Source: Reddit One significant reason why Ripple’s XRP token is a better hedge against inflation than the US dollar is its finite supply. There will only ever be 100 billion tokens. About 59 billion XRP tokens are in circulation right now. The USD, on the other hand, has no fixed supply cap. The central bank can print new money whenever it seems fit. XRP also operates on a decentralized network. This means that there is no central authority. The dollar’s value could change according to US monetary policies. Factors like government spending or quantitative easing play a signific...