On my X feed, and in specific investing blogs I read, there is an endless supply of “inflation panic” and “dollar devalue” content. It also seems to always go viral. The irony here, is that as of late, no party is more outspoken about inflation worries than the crypto community. But that also makes little sense. In this post, I want to dive into that and expand on why inflation is actually a beautiful thing.
If you’re in crypto or long risk assets, you should love inflation.
Let’s unpack this.
Imagine a world where the U.S. decides to deflate the Dollar, maybe even tie it back to gold. Suddenly, Dollars are harder to come by, more valuable, and hoarded like treasure. What happens next?
Crypto dies.
That might sound dramatic, but it’s true. Crypto thrives in an environment where fiat is abundant and depreciating. When the Dollar weakens, risk assets shine. Why? Because crypto—by design—has fixed or limited supply. In an inflationary world, that scarcity becomes its superpower.
Inflation isn’t just a monetary phenomenon. It’s an economic stimulant. When your Dollars are worth a bit less tomorrow than they are today, you’re incentivized to move, to spend, to invest, to innovate now rather than later.
This is the lifeblood of economic growth. Stagnation comes from hoarding. And if you’re holding crypto? You benefit from that motion. You want people trading, building, speculating, borrowing. You want flow. You do not want deflation or dollars becoming more rare.
Deflation Is the Real Killer
Here’s the part that breaks some brains: in a deflationary environment, the best thing to own is… Dollars.
Not Bitcoin. Not growth stocks. Just cold, hard cash. Because deflation means those Dollars get more valuable over time. Why take risks when your purchasing power rises just by sitting still?
Deflation crushes innovation and kills risk appetite.
So, while there’s a wave of viral posts going around about the U.S. Dollar losing value, and everyone’s suddenly a macro expert, warning of collapse with even Coinbase who jumped in recently with ads about inflation and the weakening Dollar, they are doing something incredibly ironic: bashing the very thing that makes them exist in the first place.
So next time you see a doomsday post about the Dollar, remember this: assets like growth stocks and crypto do not win when the Dollar dies. Actually, they win when fiat inflates slow and steady. They should be cheering the Dollar on, not trying to crush it and make it deflate.
Keep the inflation going. Keep the pump alive.
You decide.