Post
Topic
Board Economics
Re: The Deflationary Spiral Argument
by
_act_
on 25/03/2022, 07:45:22 UTC
Also, it is important to realize that BTC is not deflationary, but rather disinflationary - in the sense that the emission rate is positive, but slowing.
Bitcoin hedge against fiat inflation is more in long term, which means it is deflationary, but the time when the price of bitcoin increases sharply in short time, then it can be said to be disinflationary, but bitcoin price is also increasing (net increase) in long time. Bitcoin being an asset even explains this.

inflation will not happen unless the prices of goods go up, if there is no demand and there is production, no matter how much you print these prices will not change, if people make a million a day but don't want to buy anything extra from condoms or cars there won't be any change in price. If the government hands everyone $100k but everyone who gets that money hides it under the mattress there won't be any change.
Money printing will likely lead to inflation. I understand you though, you mean money printing is not the primary cause of inflation and you are right, but in countries that prints money excessively, this has led to hyperinflation in the paste, those that print money higher than before also lead to more demand of goods and services, what will later happen is that the output will not support the demand which may lead to inflation, this will be what will most likely happen and inflation happen in such economy again.