Inflation is a big problem in the economic world right now. It’s massively on the rise—meaning your money is becoming worth less and less over time. Prices in shops are way up to help combat this, and economic freedom is worsening for much of the globe.
Much of this is down to quantitative easing. Traditional currencies like the dollar can be printed on demand when more money is needed. But this increase in supply devalues existing money in circulation. This can even lead to hyperinflation, and is not a good way for an economy to be going.
Long ago, fiat currencies like the dollar used to be backed by gold in reserve. For every dollar that was in circulation, an equivalent amount of gold was held to back up its price. No new dollars could be printed unless there was more gold in store. This gold standard was scrapped a few decades ago, and means that the price of a dollar is down to sentiment rather than actual backed value. More dollars can be created whenever needed, increasing supply, and decreasing their value. New cryptocurrency Uniglo solves these issues, and is also one of the hottest new projects in the crypto world right now. Let’s have a look at why:
Uniglo is completely deflationary
Unlike fiat, GLO has a solid 1:1 asset-backed store of value. Like a gold standard, and it actually includes digital versions of gold alongside a range of other investments including crypto and NFTs. This means no new coins can be minted, and provides a solid backing of the currency’s price. It also isn’t over-reliant on major crypto like BTC’s performance (unlike many other altcoins) as it is completely diversified.
And GLO also uses an innovative new dual burn mechanism to help become even more scarce over time, and increase its deflationary momentum. Tokens are burned every time a transaction in GLO takes place, and the platform will also “buy-back” GLO to burn even more tokens over time. All of these features make GLO the only truly deflationary, fully asset-backed community-driven cryptocurrency in existence, and one that could rival the fiat world for usability and become a crypto you can actually spend on day-to-day purchases.
What about BTC and BNB?
Bitcoin has had an interesting few months. While prices have dipped, they didn’t go as low as many expected. This shows some strength during a bear market. There’s undoubtedly a future for BTC, but it’s unclear how long it might take ot get back up to all-time highs.
BNB acts as the native token for the wider Binance ecosystem, and is one of the hottest altcoins around right now. It gives holders access to a ton of different solutions including BNB Vault for passive income gains.
These coins could also be viewed as deflationary, but they are also open to massive over-speculation, unlike GLO which has a solid floor built in and isn’t susceptible to massive dumps in price. That’s why GLO could be the future of deflationary coins.
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