Post
Topic
Board Bitcoin Discussion
Re: Bitcoin halving and inflation
by
Poker Player
on 26/09/2023, 02:57:42 UTC
Despite how halving increases the price of bitcoin to make it more profitable to investors, I'm wondering if it will not lead to devaluing of the currency in every four years? Will the effect of these not be inflation of bitcoin in every four years? I'm quit new in bitcoin, and I might be wrong, but I think that as halving continues to occur, bitcoin value might start to diminish gradually. And will it not negatively affect the purchasing power of bitcoin, in making payments for goods and services? I stand to be corrected.

As far as I can see you don't understand the basic principle of supply and demand. Bitcoin demand has been growing since its inception, with some ups and downs, but over the long term it has clearly grown. If demand remains constant or increases, which is what will continue to happen for the next few years, and supply decreases, the price increases. Halving reduces supply. Therefore, Bitcoiners expect the price to continue to rise, albeit with volatility because this is not a straight line.

So far Bitcoin returns have far outpaced inflation because it has proven to be the best financial asset in the world since 2009. And so we expect it to continue to be. I don't know if something else will be created in 10 years that will be better than Bitcoin but as of today it is unrivaled.