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Not at all. 'Real money' currencies are inflationary, for lots of reasons, including the fact that we keep printing more money. If I stash my $millions under my
by joosters 13y ago
Not at all. 'Real money' currencies are inflationary, for lots of reasons, including the fact that we keep printing more money. If I stash my $millions under my mattress for a decade, do you reckon they'll be worth less or more after that time?
Bitcoin however has deflationary pressures, because there's a fixed upper limit on the coins (21 million) and they become harder and slower to mine. With a price of (say) $1000/BTC, that means there can only be 21 billion dollars worth of bitcoins out there. But if you expect bitcoin usage to explode and account for trillions of dollars of wealth, then the bitcoin price has to increase.