As for question 1: The US dollar is not deflationary because it is inflationary. I wasn't really trying to make a distinction between the two, I just worded i

As for question 1: The US dollar is not deflationary because it is inflationary. I wasn't really trying to make a distinction between the two, I just worded it weirdly in the OP. As for question 2: There's two parts to this answer. First, you don't need a money supply to be shrinking to have deflation. In May the US dollar deflated 0.1%, and plenty were printed [1]. Many things can cause deflation, see this: https://en.wikipedia.org/wiki/Deflation#Causes_and_corresponding_types https://en.wikipedia.org/wiki/Deflation#Causes_and_correspon... Second, bitcoin does have more money mined every day, just like the US dollar. And the rate of bitcoin mining (4%/year) is actually higher than the rate of US dollar printing. However, bitcoin has a predetermined monetary policy: the mining rate will eventually drop to zero, which is why many people argue that bitcoin is deflationary. [1] https://blogs.adobe.com/conversations/2017/06/may-dpi-report-second-month-of-u-s-deflation-after-a-long-stretch-of-rising-prices.html https://blogs.adobe.com/conversations/2017/06/may-dpi-report...