> A common argument I hear from crypto folks is that government-backed currencies are susceptible to hyperinflation, as if cryptocurrencies aren't. Sufficientl

> A common argument I hear from crypto folks is that government-backed currencies are susceptible to hyperinflation, as if cryptocurrencies aren't. Sufficiently large, they are not. What made you think they were? Assuming you have a de facto currency which is non-inflationary, the value in holding it rather than redirecting liquidity to another asset class is that holding it is the least risky option. The reason money was directed in to the non-inflationary asset in the first place was that the de facto currency was actively devaluing itself through inflation. The larger concerns of a currency which cannot inflate are the economic problems which can come along with such stiffness - keyword: "deflationary crash."