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what you are mentioning is deflation, the opposite of inflation. there is a limited amount of bitcoins, so indeed it is indeed deflationary, unlike most fiat, t
by jypepin 9y ago
what you are mentioning is deflation, the opposite of inflation. there is a limited amount of bitcoins, so indeed it is indeed deflationary, unlike most fiat, that central authority keep printing anytime they need.
- mars4rp 9y agoyou are right, and why deflation better than inflation?
- jypepin 9y agoWell, inflation makes the money you have in the bank loose value over time. In extreme examples you have countries like Venezuela and results are bad: people struggle to keep their buying power, companies are leaving the country, imports become way more expensive, etc. I don't think there is a real world example of a country with deflation, so I don't know if the opposite would be true or what real consequences would be, but you can expect the opposite to happen.