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So we have temporarily inflation in a deflationary currency. That is interesting phenomenon.

• natrius 13y ago
  You're mixing two definitions of inflation. Bitcoin undergoes monetary inflation as the supply increases until the late 21st century. Since the supply increases more slowly than the demand for the currency increases, the bitcoin economy sees price deflation. This isn't a particularly interesting phenomenon because it's common for the value of a currency to increase (price deflation) even as the supply of the currency increases (monetary inflation). This is what happens with gold when it is used as a currency, for instance. When the terms "inflation" and "deflation" are used without qualifiers, they usually refer to prices, not money supply.