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> I thought BTC has zero inflation baked in the algorithm Only if it were the only currency in the world, and the amount of value in the world doesn’t decrease
by Someone 4y ago
> I thought BTC has zero inflation baked in the algorithm
Only if it were the only currency in the world, and the amount of value in the world doesn’t decrease significantly.
As soon as there’s more than one currency, the market could decide the relative values of the two changed overnight.
Also, if the amount of value in the world were to decrease significantly, you still would see inflation (as, for example, one can see in times of war, when the amount of money doesn’t change much, but supply for some goods falls, while demand stays the same)
- Someone 4y ago> Only if it were the only currency in the world Reply to self: not even then. If the people lose trust in the only currency available (say because of a rumor that the maker of it keeps printing new money), there’s always the option of going back to a barter economy.