Inflation resistance refers to a cryptocurrency’s ability to maintain its value over time, particularly in an environment where traditional currencies may lose value due to rising prices. This quality is often linked to the supply mechanics of the cryptocurrency.Many cryptocurrencies have a fixed supply or a predictable inflation rate, which limits the total number of coins that can ever be created. For example, Bitcoin has a maximum supply cap of 21 million coins. This scarcity can help preserve value since it contrasts with fiat currencies, which can be printed in unlimited amounts by governments.Additionally, some cryptocurrencies employ mechanisms like burning tokens or halving events to reduce supply over time. These strategies aim to counteract the effects of inflation, ensuring that the value of the cryptocurrency does not diminish as demand increases.Investors looking for stores of value often seek out inflation-resistant cryptocurrencies, as they provide a hedge against economic uncertainty and the devaluation of fiat money.