⭐ Merited by JayJuanGee (2)
I found something interesting from this tweet
from this I can conclude that
Bitcoin Unlike most other currencies and assets, bitcoin is a deflationary currency due to its unique monetary policy. bitcoin is specifically designed to operate as a robust and secure store of value, and as an alternative to existing banking systems, financial networks, and currencies.
Two distinctive features of bitcoin that distinguish it from bank-issued or operated currencies are its decentralized nature and fixed supply. The supply of Bitcoins is capped at 21 million and as a result, it is impossible for more than 21 million bitcoins to exist.
besides referring to the words of economist Robert Murphy of the Austrian School of Economics who said that
“Part of where this fear of deflation comes from is, historically, it's associated with very bad economies. So, during the Great Depression of the 30s, there were falling prices. And there are other periods where prices fell when things were bad, but I would argue that the causality was the other way around. Partly what was going on there was people were concerned because the economy was so terrible. And, so what do you do when you're afraid? You don't want to invest in companies and things like that. You rush to liquidity. You rush to hard money. That's why you often see in periods of panic people will rush to the money, so you see prices of all other things quoted in money fall. So, it's not that the falling prices caused the bad economy. It's the other way around”
from his words i can conclude that bitcoin deflationary monetary policy will only increase the demand for bitcoin in the long run. As Burniske notes, already 80 percent of the bitcoin supply is in circulation and bitcoin creation will be limited as the years go by, after “halfing the miner reward.
so no need to worry about bitcoin because there will be no inflation in it.
from this I can conclude that
Bitcoin Unlike most other currencies and assets, bitcoin is a deflationary currency due to its unique monetary policy. bitcoin is specifically designed to operate as a robust and secure store of value, and as an alternative to existing banking systems, financial networks, and currencies.
Two distinctive features of bitcoin that distinguish it from bank-issued or operated currencies are its decentralized nature and fixed supply. The supply of Bitcoins is capped at 21 million and as a result, it is impossible for more than 21 million bitcoins to exist.
besides referring to the words of economist Robert Murphy of the Austrian School of Economics who said that
“Part of where this fear of deflation comes from is, historically, it's associated with very bad economies. So, during the Great Depression of the 30s, there were falling prices. And there are other periods where prices fell when things were bad, but I would argue that the causality was the other way around. Partly what was going on there was people were concerned because the economy was so terrible. And, so what do you do when you're afraid? You don't want to invest in companies and things like that. You rush to liquidity. You rush to hard money. That's why you often see in periods of panic people will rush to the money, so you see prices of all other things quoted in money fall. So, it's not that the falling prices caused the bad economy. It's the other way around”
from his words i can conclude that bitcoin deflationary monetary policy will only increase the demand for bitcoin in the long run. As Burniske notes, already 80 percent of the bitcoin supply is in circulation and bitcoin creation will be limited as the years go by, after “halfing the miner reward.
so no need to worry about bitcoin because there will be no inflation in it.