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02 Apr 2015

Bitcoin Represents a Deflationary Money System

Bitcoin Represents a Deflationary Money SystemBitcoin is Generally Deflationary by via Grab your free copy of The Bitcoin Revolution:

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Comments

  1. Mateo Vega says

    April 2, 2015 at 2:29 pm

    Your main point is correct that one should expect Bitcoin to behave as a
    deflationary currency over the longterm and appreciate in value with many
    more volatile bubbles. Technically Bitcoin is a disinflationary currency
    however 🙁 http://www.investopedia.com/terms/d/disinflation.asp)
    Up until 2140 and than bitcoin goes to no inflation or a slight amount of
    deflation if you consider some may lose their private keys.

    You may feel that I am nitpicking here but it is an important distinction
    to give context to what is going on in the market. Bitcoin is approx twice
    as high as the average price from 2013 with a steady new support but is off
    the peak value and showed a long correction lasting over a year. If Bitcoin
    was deflationary or had no inflation this would leave some to correctly
    believe that it wasn’t growing in adoption. In reality Bitcoin inflation is
    high right now at ~10% compared to the reserve fiat currency of USD which
    is both strengthening against foreign currencies and only has inflation
    around 5-8% a year(depending upon how you want to calculate it… and no,
    2-3% is a lie). Armed with this information you can see that bitcoin is
    still growing in adoption and just has gone through a market correction and
    will likely go through another disinflationary bubble next year.

    Reply
  2. Diginomics says

    April 2, 2015 at 2:50 pm

    Generally speaking, bitcoin represents a deflationary money system.

    Reply

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