Cryptocurrency is not the same as real money or cash, which circulates around the world as legal currencies of various states. Instead, bitcoin is digital and worldwide, and its value is entirely determined by the demand and supply of certain coins. As a result, it simply means that cryptocurrencies do not respond to inflationary pressures in the same way that a foreign currency would. Many bitcoin supporters think that it is a counter-inflationary asset. As the value of your currency falls, the value of your cryptocurrency rises.