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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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Will deflation destroy Bitcoin?

One has to distinguish between three different sources of deflation. Based on the famous quantity equation there are three possible scenarios how a deflation can happen. … So there are 3 ways this can happen: M decreases: So called Debt Deflation. This is a huge problem for banks and that is what most economists fear. …
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