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Questions tagged [deflation]

Deflation is a general fall in the price of goods measured in a particular currency. Deflation indicates an increasing value of currency so that over time, less and less of that currency is required to purchase the same value of goods.

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whats the use case of bitcoins?

Before answering this question please go through this scenario Lets assume we have now become a bitcoin only economy nearly all bitcoins have been mined, now someone wants to do business and he needs ...
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Why bitcoin is not inflationary? [duplicate]

I understand that a lot of people today stack Bitcoin instead of spending them and that makes sense because there is a limited number of bitcoins. However, I think that for bitcoin to be a real ...
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How is bitcoin deflationary if new coins are being generated everyday from thin air?

Example: The US mint prints $541 million dollars every year. This robs us by making our dollars worth on average about 2 cents less each year. Bitcoins are generated in blocks. Today, a block ...
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Bitcoin from an economic standpoint?

Anybody have any good resources to learn about bitcoin from an economic standpoint? Specifically discussing the debate around its deflationary nature?
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Is bitcoin deflation a bad thing? [duplicate]

I have read that bitcoins are relatively immune to inflation and will actually deflate in value: Once 21 million coins exist, they become deflationary since no new coins are issued and, as ...
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Is Bitcoin deflationary and inflationary at the same time?

I was wondering as Bitcoin is represented in the public and media as a deflationary currency (for more adept media as payment protocol). Is it really deflationary? Deflation is described on Wikipedia ...
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Can anyone point to flaws in my counter-arguments of bitcoin critiques? [closed]

Regarding the granularity problem: Here is a worst case scenario: M2 Monetary Supply is 66 trillion. If it all moved to BitCoin, each coin would be worth 3.1 million dollars. Math: 66000000000000/...
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Why are all popular crypto currencies deflationary?

There is a lot of criticsm and debate over whether bitcoins will ultomately fail because of its deflationary nature. I don't want to debate if that's the case or not and I also understand that the ...
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Inequality in a Bitcoin World

So let's assume at some point in the future bitcoin has replaced fiat currencies and we thus have a fixed money supply. Let's also assume we have increasing production and therefore deflation. It ...
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Will the energy cost and deflationary nature of Bitcoins doom the currency to obscurity?

I couldn't find enough questions that ask this head-on1, so consider that if: Bitcoins are designed to reflect the deflationary characteristics of a specie currency; and The distributed nature of ...
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1answer
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How can bitcoin be finite? [closed]

Even if a finite number of coins exist if it can be split up by sending out .000001 per say than I don't see how that wouldn't be infinate money. Because lets say you have one bitcoin that is worth 1 ...
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How is hoarding to be prevented?

If all humans used bitcoins now (Jan 2013) for most of their transactions, then a dollar would be worth about a billionth of a bitcoin (1/10 Satoshi). If bitcoins take ten years to catch on that ...
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Why are fiat Currencies inflationary and Bitcoin deflationary?

Why are all fiat currencies inflationary, and lose value with time? Could governments make them deflationary? What are the advantages of inflationary currency compared with deflationary currency? ...
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Bitcoin inflation in 9/12 doesn't seem to have been corrected. Why not and will it be fixed?

I'm looking at the Total Bitcoins in Circulation graph and don't understand why there is a spike of coins being generated in Sept '12. What caused this to happen? Also, since there is a fixed number ...
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Why was Bitcoin designed with a decreasing production rate?

I have no doubt that the person who designed Bitcoin was many times smarter than me but with the benefit of hindsight was the decreasing number of bitcoins a good design decision given the 'hoarding' ...
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273 views

How many coins are needed to ensure stability i.e. neither inflation nor deflation?

The key to currency stability is to have neither too many nor too few of a currency in circulation. So what is the "Goldilocks" area going to be if Bitcoin really catches on and everybody wants to use ...
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Psychological price

I live in Europe, and more than a decade ago our national currency was replaced by the Euro. For a few years, everyone calculated back the price in Euro to the old currency when buying something, ...
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882 views

Cryptocurrency with less deflationary properties

I wonder what is the benefit of having Bitcoin reduce the coins mined per block over time? Suppose a slightly less deflationary growth scheme was possible (and keep other properties that make Bitcoin ...
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Changing Bitcoin's deflationary nature

One of the most common criticisms made against Bitcoin is related to its deflationary nature. Regardless of the advantages and disadvantages of an inflationary system, would it possible to change the ...
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Will deflation destroy Bitcoin?

With the limited total quantity of bitcoins, and people losing their wallets constantly decreasing that number, won't rampant deflation destroy Bitcoin?