Post
Topic
Board Economics
Re: Is BTC really a deflating currency or an inflating?
by
Peter Lambert
on 04/12/2013, 16:40:29 UTC
The problem is that there are two definitions of inflation/deflation which are used by different people. There is monetary inflation, measured by the total amount of money in the economy, and there is price inflation, measured by the change of price of everything. Usually if you have monetary inflation you will also have price inflation, but it does not always happen that way. Bitcoins are an example of monetary inflation (25 new bitcoins are added every 10 minutes), but at the same time we have price deflation.