Bitcoin will be less and less deflationary going forward. We will have better tools to hold and spend our sats. Bitcoin is a fixed supply currency.
Currencies with inflation will go out of fashion.
It has to be deflationary if the economy grows because the same amount of Bitcoin will represent an increasing amount of goods and services on offer and it can only do that by lowering the price per good or service.
A deflationary currency discourages spending which in turn tampers the economy. It's Bitcoin's self defeating mechanism, or for that matter the self defeating mechanism of any fixed supply currency.
That's why the dollar had to be detached from gold. While the amount of gold is increasing it's nowhere increasing as fast as the economy.
A deflationary currency discourages spending which in turn tampers the economy. It's Bitcoin's self defeating mechanism, or for that matter the self defeating mechanism of any fixed supply currency.
That's why the dollar had to be detached from gold. While the amount of gold is increasing it's nowhere increasing as fast as the economy.