Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
xmonkeyx
on 05/06/2024, 11:09:53 UTC

Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease, because the value of Bitcoin goes up.

Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down.


I conclude from your opinion that inflation can affect the luck of business people, especially Bitcoin miners, because prices fall, causing the prices of goods and services to increase. However, if there is a deflationary condition, Bitcoin miners might wait for this because the rising value of Bitcoin can cause the relative price of goods and services to fall so that miners can easily buy them and make a profit.