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Isn't that more like deflation? Where each monetary unit becomes worth more over time?

• jMyles 12y ago
  That's not what deflation means. Deflation is a decrease in the number of monetary units. Thus, one effect of inflation is that each monetary unit becomes worth more. Similarly, rising prices is an effect of inflation, and not inflation itself. Your confusion is understandable: over the last decade or so, several high profile "macro-economists" have subtly but suddenly began misusing these terms as you just did, so much so that dictionaries and textbooks have begun to follow suit. In any case, most proof-of-stake coins inflate per their mechanism, and do so at a generally faster pace than proof-of-work coins. Moreover, proof-of-stake advocates believe that their coins' mechanisms favor a healthier and more predictable distribution of units, rather than the volatile arms race of proof-of-work.
  • EGreg 12y ago
    No, deflation can also mean that the same amount of money is chasing a greater number of goods and services in a growing economy. Actually deflation meaning the price of money keeps going up is a good definition.
    • jMyles 12y ago
      Normatively, it may or may not be a good definition. Empirically, it is a redefinition; it is not the traditional use of the word. http://en.wikipedia.org/wiki/Inflation#Related_definitions http://en.wikipedia.org/wiki/Inflation#Related_definitions