How Crypto Helps Businesses and Investors Protect Value During Inflation

Over the past few years, prices have risen faster than most households or businesses expected. According to the World Bank, global inflation is expected to be 2.9% in 2025. This forecast is driven by factors like ongoing trade tariffs, tight labor markets, and a projected slowdown in global growth. It’s still above pre-pandemic levels but lower than previous forecasts. With traditional savings losing purchasing power, investors and companies are increasingly asking a straightforward question:

Can crypto help preserve value when money buys less every year?

This article breaks down how digital assets behave during inflation, which tools actually work in practice, and how businesses use crypto to protect their operational value.

Inflation is the steady increase in prices across the economy. Even at a modest 2% annual rate, the value of money falls by almost 18% over 10 years. At 6%, which many countries saw in 2021–2023, purchasing power drops by more than 45% over the same period.

For individuals, this hits savings. For businesses, it affects payroll budgets and cash reserves. And because fiat currencies can be printed in large quantities, the global money supply grew by over $20 trillion between 2020–2022. Many investors now look for assets that cannot be diluted so easily.

Bitcoin was just engineered to be anti-inflationary. There are several factors to keep it valuable:

• Fixed supply: 21 million coins
• Predictable issuance: block reward halves every ~4 years
• Annual supply inflation today: ~1.7%
• After next halving: ~0.8%

In comparison, most fiat currencies expand by several percent each year. sometimes dramatically during crises. Multiple studies show that Bitcoin’s price often moves upward when inflation expectations rise. Investors treat it as a hedge against currency debasement. However, the same data shows that Bitcoin is not a perfect short-term store of value: during periods of market stress, the price can fall sharply.

The takeaway: Bitcoin works best as a long-term anti-inflation instrument, not as a week-to-week shelter.

Ethereum introduced fee burning via EIP-1559. When network activity is high, thousands of ETH per day can be burned, reducing net supply. In 2023, Ethereum’s effective supply inflation briefly dropped below 0%, making it one of the first major deflationary digital assets.

Other networks experiment with capped supply, burn mechanisms, or low-inflation tokenomics that mimic scarce assets.

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Gold has always been the classic inflation hedge. Bitcoin competes with it in some ways, but behaves differently when markets panic.

Yet in countries facing real-life inflation shocks, crypto adoption tells a clearer story.

In these cases, Bitcoin isn’t a perfect asset, but it serves as a mobile, non-sovereign store of value when fiat systems erode.

While Bitcoin dominates headlines, stablecoins have become the true workhorse of digital finance. Stablecoins hit a record this year — their annual transaction volume jumped 83% from July 2024 to July 2025, passing USD 4 trillion in total transfers between January and July 2025.

Stablecoins don’t hedge inflation directly, but they stabilize day-to-day value, especially for companies operating in volatile regions.

Crypto has become a serious part of global finance, but it still comes with its own set of risks. Understanding these factors doesn’t mean avoiding digital assets — it means treating them with the same discipline you’d apply to any high-potential instrument.

• Market volatility
• Regulatory changes
• Counterparty risk for stablecoins
• Liquidity risk during extreme market events

For traders and businesses, the solution is diversification: spread exposure between crypto, stablecoins, and traditional assets. Remember: you handle BTC and other assets inflation risks.  Don’t rely on a single instrument.

Still, long-term structural factors matter too:

• Bitcoin’s supply cannot expand
• Stablecoin adoption keeps accelerating
• More companies are integrating digital payment rails
• Institutional crypto ownership rises each year

These trends suggest that digital assets will continue playing a growing role in protecting purchasing power.

Inflation steadily erodes value, and the past few years made that reality impossible to ignore. Crypto offers a set of tools that help individuals and businesses preserve their financial position.

Crypto isn’t a perfect shield. But used thoughtfully, it provides something traditional systems struggle to deliver: borderless access to assets that cannot be devalued by monetary policy alone.