Phil Kwok, co-founder of EasyA, recently took to X to highlight what he describes as a “perfect storm” forming in global finance.
His message to XRP holders and the broader crypto community is clear: the decline in fiat money’s reliability as a store of value, combined with the scarcity of certain cryptocurrencies, could reshape how people preserve and transfer wealth in the years ahead.
Inflation and the Weakening of Fiat
For decades, fiat currencies like the U.S. dollar, euro, and pound have served as reliable stores of value. However, sustained inflationary pressures in recent years have eroded confidence. While headline inflation has cooled from the peaks of 2022, it remains above central bank targets in many economies, with the IMF and World Bank warning of persistent risks.
This means that fiat money continues to lose purchasing power over time, making it less attractive for savers and long-term holders. Against this backdrop, Kwok points to the growing appeal of assets not subject to constant monetary expansion.
the perfect storm is brewing:
1) fiat currency is no longer a store of value (just look at how crazy inflation has become)
2) cryptocurrency with finite supply is now a genuine alternative to fiat
just imagine what will happen when people realise these two very simple facts.
— Phil Kwok | EasyA (@kwok_phil) September 3, 2025
The Case for Scarce Cryptocurrencies
Scarcity lies at the heart of Kwok’s argument. Cryptocurrencies such as Bitcoin, capped at 21 million coins, and XRP, which was created with a fixed supply of 100 billion tokens, stand in stark contrast to fiat currencies, which can be expanded indefinitely through central bank policies. This design feature is what gives digital assets their appeal as a hedge against inflation and currency debasement.
Kwok emphasized this point in response to skepticism from an X user named Will, who questioned whether crypto could simply replicate the cycle of fiat by endlessly creating new coins. Kwok’s reply was simple but pointed: “fixed supply unlike fiat.” By design, the core supply of many leading cryptocurrencies cannot be altered, creating a structural distinction from fiat money.
Addressing Skepticism in the Crypto Space
Will’s question, however, highlights an important nuance. While major assets like Bitcoin and XRP enforce hard-coded limits, the crypto ecosystem as a whole does see the constant creation of new tokens. Many projects launch inflationary models or mint tokens to incentivize participation.
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This dynamic has led critics to argue that crypto could replicate the same dilutionary tendencies as fiat. The key difference is that investors can distinguish between capped-supply projects and inflationary ones, and market demand generally rewards assets with proven scarcity and utility.
Implications for XRP Holders
For XRP holders, Kwok’s “perfect storm” message carries weight. With Ripple’s legal battle against the SEC resolved earlier in August 2025 and regulatory clarity improving, XRP is better positioned to benefit if global investors shift toward scarce digital assets.
Beyond scarcity, XRP also offers functional utility in cross-border payments and liquidity solutions, which could amplify its role in a changing financial system.
The Brewing Perfect Storm
Phil Kwok’s framing captures a growing reality: fiat money’s weaknesses are becoming harder to ignore, while cryptocurrencies with fixed supply are proving their resilience in times of uncertainty. If investors broadly accept these two facts, as Kwok suggests, capital flows into scarce digital assets like XRP could accelerate dramatically.
Whether this storm results in a fundamental reshaping of global finance will depend on how swiftly institutions, regulators, and individuals respond to the shifting balance between fiat and crypto.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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