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The difference between a normal currency and bitcoin with regards to deflation is that bitcoin is almost infinitely divisible, whereas traditional currencies ar
by wamatt 14y ago
The difference between a normal currency and bitcoin with regards to deflation is that bitcoin is almost infinitely divisible, whereas traditional currencies are not.
Divisibility acts in opposition to deflation to create liquidity.
The idea is in the future you don't trade bitcoins per se, but microbits, or picobits etc (or whatever they will be called).
- marcosdumay 14y agoEconomies get in a liquidity trap must faster than division becomes a problem. The difference is so marcant that almost nobody even talked about divisibility before the bit coin people. Anyway, I'm not sure the expression "liquidity trap" means anything when talking about bitcoins.
- drakeandrews 14y agoSatoshis are the lowest denominator of bitcoin, being .00000001BTC