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Bitcoin is inflationary. It is currently inflating at a low rate and that will decrease every four years. That's not "deflation". Further, money holding its
by rothbardrand 9y ago
Bitcoin is inflationary. It is currently inflating at a low rate and that will decrease every four years.
That's not "deflation".
Further, money holding its value is a good thing. The only people who profit from inflation are governments with fiat and miners with bitcoin.
The people always suffer. The only reason bitcoin is going up in value despite inflation is its use case and technological ability is going up faster, and of course it started at zero.
- Terr_ 9y agoNo, you are confusing "inflation" versus "minting more money". While related, they are not the same thing. Whatever school of economics you subscribe to, 99% of the time somebody says "inflation" or "deflation", they are not referring to the "money supply" of currency in existence. Instead, they are referring to a change in proportion between that money supply versus how much "economic stuff" people want it for. Bitcoin will continue to follow its past deflationary pattern as long as the supply of Bitcoins does not keep up with the underlying growth of everything else... And it's hard to see a future where "Number of coins mined this year" grows while "Size of human economy" shrinks.
- rothbardrand 9y agoInflation is literally minting more money. Full stop. The definition you are giving is a propaganda line to try and rationalize robbing the populace via inflation. Even Keyenes agrees with me on this. (But thank you for not saying it's the consumer price index!) What you're actually describing is the purchasing power effects of minting more money. Second paragraph I agree with.