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The price of goods (using USD as a proxy for goods, which is fine so long as you account for inflation of USD) in bitcoin is generally speaking decreasing. This
by beojan 9y ago
The price of goods (using USD as a proxy for goods, which is fine so long as you account for inflation of USD) in bitcoin is generally speaking decreasing. This means bitcoin is deflationary (despite new bitcoin still being mined).
- adventured 9y agoCurrently Bitcoin is neither inflationary nor deflationary. It's a near zero swap (mostly other than fees). Nothing is created nor destroyed, which is why the primary argument for Bitcoin having much value today is as a value store. You want to sell $1 million in bitcoin. Someone else is willing to pay you $1 million USD for those bitcoins. $1 million neither left nor was added to the economy. You now have the $1m USD to spend or invest as you see fit. You swapped positions, that's it. No deflation occurred at all.
- beojan 9y agoI can buy more of whatever good I want for 1 bitcoin today than I could a couple of months ago, and I could buy more then than at the beginning of last year. That means bitcoin is deflating.
- Klathmon 9y agoIt depends on your scale, take this weekend for example and it's absolutely not deflationary according to your definition, and there is no guarantee that it will continue in either direction.