Inflation is the rate at which the value of an asset is changing in relation to the services or goods it can be exchanged for.

Positive inflation occurs when the supply of money in an economy increases faster than the demand for goods and services, leading to a decrease in the purchasing power of money.

In the context of crypto and decentralized finance (DeFi), inflation can refer to the general increase in the supply of a particular cryptocurrency or the decrease in the purchasing power of a cryptocurrency due to market forces. Inflation can have a negative impact on the value of a cryptocurrency, as it reduces the purchasing power of the currency and can lead to a decrease in its value.

Overall, inflation is an important concept in both traditional finance and the world of crypto and DeFi. It can have a significant impact on the value of cryptocurrencies and other digital assets, and is something that investors and users should carefully consider when making decisions about their investments.

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