Bitcoin is Generally Deflationary by via Grab your free copy of The Bitcoin Revolution:
Learn how to make money with bitcoin
Comments
Mateo Vegasays
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.
Bitcoin is Generally Deflationary by via Grab your free copy of The Bitcoin Revolution: 
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.
Generally speaking, bitcoin represents a deflationary money system.