Post
Topic
Board Economics
Re: Is deflation good for a coin?
by
Eugenar
on 09/02/2018, 13:30:12 UTC
Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?
In my opinion it is not good for the coin but is sometimes good for the investors since they will be able to invest as much as possible as its market value gets lower. It opens opportunity to its users. But surely, if it is possible, it would be much better if the market value of a certain coin will continuously increase.  But the problem is that most cryptos are volatile so deflations are inevitable.