6
votes
Accepted
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 ...
- 6,978
3
votes
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 ...
- 17.4k
2
votes
Accepted
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 ...
- 228
2
votes
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 ...
- 21
2
votes
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 ...
- 152
1
vote
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 ...
- 352
1
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 ...
- 50.9k
1
vote
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 ...
- 5,233
Only top scored, non community-wiki answers of a minimum length are eligible