6
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Will cryptocurrencies that have a finite supply (like 21m btc) cause deflation?
Yes, cryptocurrencies that have finite supply are bound to create deflation. This is because the same finite supply of coins will represent an increased economic output that results from technological ...
- 7,308
3
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How can loans work with bitcoin?
In Fiat Interest and Inflation cancel each other and promote borrowing and thats a healthy thing, but bitcoin economy a borrower has to fight against deflation and interest, if interest rate gets ...
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2
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Why bitcoin is not inflationary?
If one could simply "print more" Bitcoins, then it would quickly lose its value (this is the definition of inflation btw) because of increased supply. This is the main reason why, for instance, the ...
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Why are fiat Currencies inflationary and Bitcoin deflationary?
Fiat currencies are inflationary by design, so that people don't hoard currency. The more your money loses value every year, the less likely you are to keep it sitting in a bank. This availability of ...
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Could bitcoin's limited supply prevent it from becoming a worldwide currency
To answer your second question:
What purpose would extending the amount of Bitcoin by a fixed yearly supply serve? A Bitcoin consists of 100.000.000 Satoshis - even if large amounts of Bitcoin were ...
- 162
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If bitcoin replaces current monetary system wouldn't deflation be a problem?
First, is deflation a problem?
Do you want me spending my time
looking for products they want or invest in businesses
when I would rather be sitting at home reading, consuming nothing? Does worrying ...
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If bitcoin replaces current monetary system wouldn't deflation be a problem?
Excellent topic. Let me write down comparaisons and exemples I know
Inflation currencies
First, the inflation of FIAT currencies was certainly not created to "boost spending". Inflation is ...
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If bitcoin replaces current monetary system wouldn't deflation be a problem?
Well I believe you have some misconceptions, which, if you think them through, you may change your mind on.
First we should define inflation, in this case we talk about monetary inflation, which means,...
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Could bitcoin's limited supply prevent it from becoming a worldwide currency
Your question is probably better suited in an economic theory forum where this open ended question is discussed at length amongst scholars. You are making the Keynesian argument that the ability to ...
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vote
Accepted
After last bitcoin is mined, can miner(s) with nefarious reasons kill bitcoin by holding fees thereby deflating Bitcoin eventually to zero?
This would be fantastic for everyone but the attacker.
First, everyone who held bitcoin would be rich. As bitcoin became more and more scarce, the price would go up. The attacker would have to offer ...
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Will cryptocurrencies that have a finite supply (like 21m btc) cause deflation?
The question isn't whether demand will fall generally with bitcoin. The question is, what will happen in a recession with bitcoin as the only currency? I believe if bitcoin is the only currency, most ...
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How can loans work with bitcoin?
First of all I don't think it needs to be so binary (bitcoin or nothing). Fiat and lending will likely co-exist along with bitcoin.
Additionally, what if instead of creating a business based on ...
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