The Bitcoin is a deflationary cryptocurrency and the reason is that it is limited in supply . This is why bitcoin is has a lot of advantage and it could be used as a store of value because inflation cannot affect it in any form.
The Bitcoin and deflation
- Thread starter Potuse
- Start date
The buying power of Bitcoin tends to rise over time, which is why it's frequently said to have a deflationary bias. This is due to the fact that there is a finite amount of Bitcoin and that the rate at which they are generated through a process called mining is intended to decrease over time.
The limit in the total supply of Bitcoin is something that it is leveraging on to be this big as there would be a point when Bitcoin can actually become very rare to find
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Exactly Bitcoin was a pioneer in this certainly, although today there are other currencies such as Bitcoin cash or Zcash that is supposed to have the same supply as Bitcoin that is, 21 million of coins, but Bitcoin has more adoption and can act better deflationary.
Inflation cannot affect bitcoin because it's limited in supply. They are people that regulated the supply of bitcoin. And the volatility of it's price is cause by it's supply and demand. That's why I believe that there are some people that determines cryptocurrency price.
Bitcoin price is heavily dependent on the traditional financial system. A single strict decision by a powerful government will push bitcoin reeling down the hill.
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Bitcoin is regard as a deflationary digital assets because it is limited in supply. Any cryptocurrency that has limited supply would be regarded as a deflationary cryptocurrency.
Yes, bitcoin is the ultimate deflationary cryptocurrency. From the moment of bitcoin's creation in early 2009, there was a hard limit of 21 million BTC available for mining. No more BTC will ever exist. As of late 2022, fewer than 2 million BTC are left for mining.
It is important to study the antecedents of Bitcoin and if you do so, you will agree with me that bitcoin is a deflationary cryptocurrency. However, this was possible because it is limited in supply.
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Actually bitcoin is a deflationary cryptocurrency which can be very difficult to predict.
Today, the price value of bitcoin will rise and immediately fall at the same which becomes very difficult to tell when and how it will fail or raise.
Today, the price value of bitcoin will rise and immediately fall at the same which becomes very difficult to tell when and how it will fail or raise.
Significantly, the bitcoin is a deflationary digital currency in that it could be use to save your funds away from inflation . Apparently, this is indeed a very good attribute that bitcoin as in stock for the investors.
Bitcoin rises and falls all too often. Deflation is a real issue, in that if the worth drops, so does your investment. Bitcoin is unpredictable, far more unpredictable than say the USD or something. Because while the USD is mostly constant and doesn't change much at all, Bitcoin can drop at any moment and stay down there for a long time. That's a risk I don't like taking.
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Bitcoin is often associated with the concept of deflation due to its fixed supply and predetermined issuance schedule. Unlike traditional fiat currencies, which are subject to central bank control and can be printed or minted as needed, Bitcoin has a limited supply. The total number of bitcoins that will ever exist is capped at 21 million, making it a deflationary asset.
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