Deflationary spiral - Bitcoin Wiki

Bitcoin - The Currency of the Internet

A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome.
[link]

SATS is a decentralized deflationary privacy token

SATS is a failed project that never got off the ground due to either ineptitude or pure laziness on the part of the failed developer.
[link]

BitcoinSoV

BSoV: The first mine-able, deflationary, open sourced, decentralized cryptocurrency Hedge to act as a Store of Value against the monetary inflation of fiat currency. BSoV is mined using a simple Keccak256 (Sha3) algorithm. There is No ICO, No Pre-mine, and No Governance. This allows for BSoV to be completely decentralized and fairly distributed. With each transfer of BSoV tokens, 1% of the total transaction is burned forever.
[link]

Bitcoin is deflationary in nature and will fail. Please help me understand how to debunk this

I have been trying to persuade others about Bitcoin and one of the questions I am asked is that governments print money to tame inflation and match the demand of currency. They argue that inflation is good for the economy and when the economy grows, shouldn't they print more currency to match the amount of economic growth.
I have tried reading Rothbard after learning about it from Roger Ver but I am not able to understand it. The fact that I studied economics in my MBA where I was taught that inflation is good only makes it more of a problem for me to understand.
If there are any blogs/videos that will help me understand this clearly, please direct me to them.
submitted by redditdabbler to btc [link] [comments]

Since bitcoin is deflationary, won't it go up no matter what granted SOME market of people deem it valuable?

I kind of think of it like a partyhat on runescape (rs3). The price only ever goes up, since it's considered a rare. Well the same principle applies right? Bitcoin as a deflationary currency becomes more rare or harder to come across as time goes on. So why should the price go down long term?
submitted by livelearnshare to Bitcoin [link] [comments]

FEE.org: Bitcoin is Deflationary Transparent and Antifragile

FEE.org: Bitcoin is Deflationary Transparent and Antifragile submitted by axiomata to Bitcoin [link] [comments]

Bitcoin is deflationary ? what does that mean ?

Bitcoin is deflationary ? what does that mean in terms of bitcoin price, any charts available ?
submitted by Amritenjoy to Bitcoin [link] [comments]

If bitcoin is deflationary, will anyone ever take out loans in bitcoins?

I borrow $1000 today, but have to pay it back in a year when it is worth twice as much (even with a 0% interest rate). How will there every be motivation to borrow money?
EDIT: I mean $1000 worth of BTC, sorry for the confusion
submitted by welliamwallace to Bitcoin [link] [comments]

FEE.org: Bitcoin is Deflationary Transparent and Antifragile

FEE.org: Bitcoin is Deflationary Transparent and Antifragile submitted by BitcoinAllBot to BitcoinAll [link] [comments]

[Frances Coppola] @KulakKippage @PaulGambles2 Bitcoin is deflationary. At the moment it is in hyperdeflation, which makes it useless… https://t.co/Kt375flx1y

[Frances Coppola] @KulakKippage @PaulGambles2 Bitcoin is deflationary. At the moment it is in hyperdeflation, which makes it useless… https://t.co/Kt375flx1y submitted by jeff98379 to newstweetfeed [link] [comments]

(FEE) Bitcoin Is Deflationary, Transparent, and Antifragile

(FEE) Bitcoin Is Deflationary, Transparent, and Antifragile submitted by douloskerux to paleolibertarian [link] [comments]

Bitcoin is deflationary in nature and will fail. Please help me understand how to debunk this /r/btc

Bitcoin is deflationary in nature and will fail. Please help me understand how to debunk this /btc submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin is Deflationary, and That's OK

Bitcoin is Deflationary, and That's OK submitted by rnvk to Bitcoin [link] [comments]

If Bitcoin is deflationary how does it ever become established as a mainstream replacement for USD (or any other currency)? /r/Bitcoin

If Bitcoin is deflationary how does it ever become established as a mainstream replacement for USD (or any other currency)? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Hurry get out! Bitcoin is deflationary!

This will never work! Your bitcoins are going to be worth too much next year to ever use in the real world. Can you imagine what they'll be worth in 2025? O the hoarding that will happen! Doomed I tell you, doomed!!
Hurry, jump back into inflationary fiat and save while you can!! The banks are still paying .001 percent for fiat hoarding!
(Do I really need to put a /s on this?)
submitted by barfor to Bitcoin [link] [comments]

Weirdness of NIRP - bitcoin is deflationary as well but we won't have the man in the middle (BANKERS) weirdness as describe here. We will get a new Era of predictable deflationary more. Good to save again.

Weirdness of NIRP - bitcoin is deflationary as well but we won't have the man in the middle (BANKERS) weirdness as describe here. We will get a new Era of predictable deflationary more. Good to save again. submitted by phanpp to btc [link] [comments]

Bitcoin is deflationary: How will it function in a deflationary collapse?

?
submitted by luckdragon69 to Bitcoin [link] [comments]

Weirdness of NIRP - bitcoin is deflationary as well but we won't have the man in the middle (BANKERS) weirdness as describe here. We will get a new Era of predictable deflationary more. Good to save again.

Weirdness of NIRP - bitcoin is deflationary as well but we won't have the man in the middle (BANKERS) weirdness as describe here. We will get a new Era of predictable deflationary more. Good to save again. submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Since bitcoin is deflationary, won't it go up no matter what granted SOME market of people deem it valuable? /r/Bitcoin

Since bitcoin is deflationary, won't it go up no matter what granted SOME market of people deem it valuable? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin is deflationary, Bitcoin has no value. Which of these statements is true? Can they both be true? If so, which criticism is the more powerful? To me they appear to be opposing tendencies.

submitted by go1dfish to Bitcoin [link] [comments]

You know how Bitcoin is deflationary when people lose them? Thanks Gox?

Seriously.. this is pretty awful, I absolutely wouldn't wish it on anyone and I'm sorry for everyone who lost their coins.
But if as I suspect happened, they sent their coins to a wallet and forgot the private key.. maybe in the long run it's good for everyone else because 5% of the Bitcoins just vanished.. so we all gained ~5% more value?
submitted by mczarnek to Bitcoin [link] [comments]

Bitcoin is Deflationary, and That's OK

Bitcoin is Deflationary, and That's OK submitted by waspoza to Bitcoin [link] [comments]

If Bitcoin is infinitely divisible, how is it still deflationary?

I think I understand how inflation can come from fiat central banks printing money to increase the supply. But if we can divide Bitcoin into arbitrarily (effectively infinitely?) small amounts, isn't that the same as an infinite supply? I am missing something when they say Bitcoin is deflationary.
submitted by whitebeardwhitebelt to BitcoinBeginners [link] [comments]

Isn't Bitcoin a deflationary currency? Why is that good (for a currency)?

So this discussion came up elsewhere, and it has me thinking about the merits of Bitcoin as an actual adopted "currency", in the sense that its used widely for actual currency-related transactions.
Right now, bitcoin feels a lot like "gold" in the sense that its nice and fun to invest in but I can't ever see me using it as a legitimate currency, except when its easier to do than doing alternative options (i.e., sending bitcoin to someone overseas, or the reddit tipping bot). By bitcoin being like gold, people tend to not conduct business in gold, but rather invest in it.
That's all nice, and for those reasons alone bitcoin has a place in the world, but I honestly find it hard to believe that it could ever work as an actual currency, instead of working as simply "digital gold".
The biggest issue is that by design, bitcoin is deflationary. This means, over time, the value of bitcoin is expected to rise (in turn, theoretical jobs that "pay in bitcoins" would pay you less BTC/hr as time goes on). While this sounds good on paper, its not that good for a currency. When people hold a currency that increases in value over time instead of decreasing in value, it encourages them to not spend and instead save since there is an expectation that the value will rise in the future. Saving, economically speaking, is bad for the economy as it causes stagnations. You don't want everyone blowing all their cash as soon as they get it (unstable), but you don't want people never spending their cash either (stagnant).
In an "ideal" currency, the price would inflate at a very slow but steady rate, as that causes people to still want to save some of it but also spend it and invest it in things. This spending stimulates the economy, allowing more jobs to be created and increasing consumer demand in general. Spending is sped up. In a deflationary currency (bitcoin), the opposite effect happens: there is less spending, more saving/investing in the currency itself, and as such can easily cause a negative impact loop causing an economic crash (assuming such a currency was widely used). This is basically what happened in Japan during the Lost Decade (http://en.wikipedia.org/wiki/Lost_Decade_(Japan) ).
Sure hyper-inflation sucks (hello USD!). But hyper-deflation sucks too. If I were to invent a currency, it would be one that by design can't hyper-inflate or deflate, but instead very slightly inflated at a steady rate. This way we ensure that people are encouraged to spend the currency instead of investing into it (but not have it inflate too much, otherwise it loses value too quickly), which encourages economic growth.
Of course, this is the real kicker: maybe Bitcoin's place in the world isn't to be a currency at all, maybe it is to be "gold", a means of digital investment, with some other currency (yet to be invented) that is very slightly inflationary but backed by Bitcoin. Some people would say this is Litecoin, but as far as I'm aware litecoin follows the same general concept of bitcoin (deflationary) so it wouldn't be appropriate. Right now Bitcoin to me is useful because it is a lot like digital gold, but its very early, as if the internet is still in the era of time before currency was invented, with people trading gold for goods instead of trading a currency for goods. And to me, that's what bitcoin is - its gold. You can buy things with gold, but not the most ideal substance to base an economy off of.
Not that we are getting anywhere close to digital future where all of our economies are ran by a cryptocurrency anytime soon, but if we were ever to get to that point, I think a future cryptocoin (with the "backing" of Bitcoin) will be the one to do it, rather than Bitcoin itself.
submitted by korjax to Bitcoin [link] [comments]

How is bitcoin deflationary?

EDIT: This is why I love this community. I know many have had complaints about /bitcoin as of late, but really, it's amazing when I can ask a serious question and receive several well-thought, insightful, and hateless replies. Thanks you guys! END EDIT
I explained bitcoin to my friend today, he'd never heard of it before. After 10 minutes of listening to my 'pitch' he had enough 'confidence' in his knowledge of the subject to challenge my 3 years of constant study.
You should sell all of your coins before that bubble pops, brah.
I lol'd a little bit. He wasn't buying into it but he was still asking me aggressive questions. I could tell that he was geniuenly interested and I love being the expert so I countered every 'attack' with ease.
At one point, he argued that bitcoin was not deflationary. Rather, he said it was a fixed amount of coins. That it was somehow different. He focused on the definition for longer than was necessary, almost as if he wanted to have a small victory, he wanted to catch me on something, anything, even as trivial as a simple definition. He quoted the definition of deflation from investopedia:
A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum.
He has considerable experience with stocks and funds and the like, where I do not. Normally, I can defend my understanding of Bitcoin against an army of haters but I wasn't able to explain how bitcoin is deflationary.
I told him that I like it when someone like him throws me a question that I can't answer of the cuff, because then I challenge myself to learn more.
Can anyone help me understand this a little better? How is bitcoin deflationary?
submitted by iammagicmike to Bitcoin [link] [comments]

Is Bitcoin Deflationary - Should You Hodl Bitcoin or Gold? Deflationary FORCES: Flight to Safe Havens Gold, Silver, and Bitcoin! Crypto is the future of retail economy. You can make deflationary money now!!! Do it!! Bitcoin & Crypto vs Scam of the Dollar – Bitcoin: A REVERSE Wealth Transfer. A Deflationary World. Bitcoin Q&A: Lost coins and the deflationary experiment

However, we know that bitcoin is deflationary, i.e. product prices denominated in bitcoin went down by a lot in the past nine and a half years. Knowing this we can say P went down (decreased), the only explanation of which is the Y went up significantly enough to offset the increase in money supply. Another explanation is the V going down significantly (offsetting the change in M) and thus ... Because Bitcoin is a deflationary currency, you should expect it to only increase in value; especially because the rest of the world practices inflation. This is a reality I don’t ever expect to ... One of Bitcoin’s main narratives is that it will greatly benefit from a period of inflation, whereas fiat money can buy less and less over time, proving the value of scarce assets.. But over the past few weeks, as the macroeconomic outlook has changed, there’s been a serious discussion of an impending deflationary cycle. Deflation meaning that the value of your fiat currency actually ... Now, given the contentious debate on deflation and the inherently deflationary nature of the Bitcoin value, it is understandable that this inherent characteristic of Bitcoin has garnered much criticism among the anti-Bitcoin individuals who follow the mainstream schools of economic thought. However, when looking at the recent fluctuations in the Bitcoin price—especially the Bitcoin price ... Bitcoin / Transaktion liegt ~ umgerechnet entspricht das aktuell einem Wert von 0,73 $ pro Transaktion. Findet nun die nächste Halbierung statt, fallen 762,5 Bitcoin pro Tag als Entlohnung weg. Damit die Miner die gleiche Entlohnung wie zuvor bekommen, müssen die Transaktionsgebühren dementsprechend ansteigen. Und zwar genau um diese 762,5 Bitcoin pro Tag auf 807,45621357 Bitcoin pro Tag ...

[index] [4424] [10451] [13526] [21084] [35401] [34069] [21550] [37451] [47318] [5844]

Is Bitcoin Deflationary - Should You Hodl Bitcoin or Gold?

#Crypto is the future of retail economy. You can make deflationary money now! Do it! https://www.patreon.com/bitcoinben Please help me spread the crypto mess... Deflationary FORCES: Flight to Safe Havens Gold, Silver, and Bitcoin! ... Interview with Roger Ver on The Future of Bitcoin Cash - Bitcoin.com Features - Duration: 26:23. Bitcoin.com - Official ... He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. What will it be like to live in a deflationary world? How does a change from an inflationary system to a deflationary system change things? Bitcoin and Cryptocurrency are going to make this world ... Let's compare the difference between Fiat currency which is issued by governments and their Central Banks vs Bitcoin. One is inflationary and the other deflationary. Watch this explainer video to ...

#