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Assuming Bitcoin is a currency, it would have experienced hyper-deflation. Under hyper-inflation, your currency would lose value at the end of the month becaus
by steego 5y ago
Assuming Bitcoin is a currency, it would have experienced hyper-deflation.
Under hyper-inflation, your currency would lose value at the end of the month because the price of everything has risen 50% or more.
Under-hyper deflation, the prices of everything plummets at the end of the month.
While this sounds great, deflation also has a negative impact on economies because people are less likely to spend their money today if they know it’s going to appreciate value at the end of the month.
If you’re interested this subject, there’s so many great resources that do an excellent job explaining monetary policy.
Salman Kahn of Khan Academy is actually a pretty great resource for explaining this stuff in simpler terms. Planet Money keeps their shows accessible and do a great job explaining the basics and backstory of policies and ideas.