Advertisement
AD
  • Warning: Undefined array key 1 in Drupal\cryptocompare\TwigExtension\RemoveSpace::getcard() (line 3010 of modules/custom/cryptocompare/src/TwigExtension/RemoveSpace.php). 
    Drupal\cryptocompare\TwigExtension\RemoveSpace::getcard('
                    Contents
                    <ul class="article__contents-list"><li class="article__contents-item"><a class="article__contents-link link-pseudo" href="#h20">Bitcoin is disinflationary</a></li><li class="article__contents-item"><a class="article__contents-link link-pseudo" href="#h31">A stable currency?</a></li></ul>
    Advertisement
    
        
    
    
        
                
            

if (document.documentElement.clientWidth &gt; 767) {
if (!window.AdButler){(function(){var s = document.createElement("script"); s.async = true; s.type = "text/javascript";s.src = 'https://servedbyadbutler.com/app.js';var n = document.getElementsByTagName("script")[0]; n.parentNode.insertBefore(s, n);}());}
}



if (document.documentElement.clientWidth &gt; 767) {
var AdButler = AdButler || {}; AdButler.ads = AdButler.ads || [];
var abkw = window.abkw || '';
var plc666695 = window.plc666695 || 0;
(function(){
var divs = document.querySelectorAll(".plc666695:not([id])");
var div = divs[divs.length-1];
div.id = "placement_666695_"+plc666695;
AdButler.ads.push({handler: function(opt){ AdButler.register(183269, 666695, [728,200], 'placement_666695_'+opt.place, opt); }, opt: { place: plc666695++, keywords: abkw, domain: 'servedbyadbutler.com', click:'CLICK_MACRO_PLACEHOLDER' }});
})();
}

                                            

        
        
                
            

if (document.documentElement.clientWidth &lt; 767) {
if (!window.AdButler){(function(){var s = document.createElement("script"); s.async = true; s.type = "text/javascript";s.src = 'https://servedbyadbutler.com/app.js';var n = document.getElementsByTagName("script")[0]; n.parentNode.insertBefore(s, n);}());}
}



if (document.documentElement.clientWidth &lt; 767) {
var AdButler = AdButler || {}; AdButler.ads = AdButler.ads || [];
var abkw = window.abkw || '';
var plc666696 = window.plc666696 || 0;
(function(){
var divs = document.querySelectorAll(".plc666696:not([id])");
var div = divs[divs.length-1];
div.id = "placement_666696_"+plc666696;
AdButler.ads.push({handler: function(opt){ AdButler.register(183269, 666696, [336,280], 'placement_666696_'+opt.place, opt); }, opt: { place: plc666696++, keywords: abkw, domain: 'servedbyadbutler.com', click:'CLICK_MACRO_PLACEHOLDER' }});
})();
}

                                            

        
    
Conner Brown, a crypto enthusiast from Stanford University, wrote a lengthy <a rel="nofollow" target="_blank" href="https://medium.com/@Conner_/stop-calling-bitcoin-deflationary-84462cb90345">Medium post</a> where he debunks the myth about <a rel="nofollow" target="_blank" href="https://www.economist.com/free-exchange/2014/04/03/bitcoins-deflation-problem">Bitcoin being a deflationary currency</a>.&nbsp;
<a rel="nofollow" target="_blank" href="#">card</a>

Bitcoin is disinflationary

The thing is, many fail to realize the very definition of "deflation," which doesn't necessarily mean a decrease in the price of a certain asset. Instead, it is a decrease in the money supply.&nbsp;

<blockquote>
Deflation is not a decrease in prices itself, but a monetary phenomenon that&nbsp;sometimes causes&nbsp;decreasing prices.
</blockquote>

However, Bitcoin's supply is not going to decrease anytime soon given that the top coin is only estimated to reach a hard cap of 21 mln BTC in 2140. The level of inflation will be gradually reducing with each <a rel="nofollow" target="_blank" href="#/news/bitcoin-hash-rate-wont-drop-after-halving-if-btc-price-rises-above-20000-analyst">halvening event</a> (the most recent one is expected to take place in May 2020). Hence, BTC can be described as a disinflationary currency.&nbsp;

<blockquote>
The Bitcoin protocol is not inflationary or deflationary in the long run. It is instead programmed to be&nbsp;disinflationary, culminating in a constant monetary base without changes to the supply.
</blockquote>
<a rel="nofollow" target="_blank" href="https://medium.com/@Conner_/stop-calling-bitcoin-deflationary-84462cb90345"><em>image by&nbsp;@Conner_</em></a>
<a href="https://u.today/what-happened-to-bitcoin-and-what-happens-next">card</a>

A stable currency?

Because of Bitcoin's fixed supply, Brown expects&nbsp;the coin&nbsp;to stabilize in the future when it turns into&nbsp;a full-fledged asset. After <a href="https://u.today/heres-why-crypto-wont-solve-inflation-crisis-in-developing-countries">its price discovery phase</a>, the Bitcoin can become a store-of-value and compete with gold.&nbsp;

<blockquote>
With bitcoin functioning as a storage vehicle that cannot be diluted, the manic hunt for a “risk-free” safety from inflation will be a thing of the past, leading to more accurate and measured investment decisions.
</blockquote>

The "store-of-value" narrative has been dominating the global crypto conversation in 2019, but Bitcoin's wild price swings serve as a stark reminder that it is yet to become a safe haven asset.&nbsp;

Peter Schiff, one of the most prominent crypto critics, recently pointed out that the latest price increase was purely the result of <a href="https://u.today/bitcoin-whales-are-selling-btc-before-market-crash-peter-schiff">whale manipulations</a>.&nbsp;
') (Line: 1037)
Drupal\cryptocompare\TwigExtension\RemoveSpace->formatbody(Array) (Line: 54)
__TwigTemplate_75845256f703f5319a38e035b4af7dd9->doDisplay(Array, Array) (Line: 394)
Twig\Template->displayWithErrorHandling(Array, Array) (Line: 367)
Twig\Template->display(Array) (Line: 379)
Twig\Template->render(Array, Array) (Line: 40)
Twig\TemplateWrapper->render(Array) (Line: 53)
twig_render_template('themes/cryptod/templates/field--body.html.twig', Array) (Line: 372)
Drupal\Core\Theme\ThemeManager->render('field', Array) (Line: 436)
Drupal\Core\Render\Renderer->doRender(Array, ) (Line: 204)
Drupal\Core\Render\Renderer->render(Array) (Line: 474)
Drupal\Core\Template\TwigExtension->escapeFilter(Object, Array, 'html', NULL, 1) (Line: 874)
__TwigTemplate_625426e732c5f7a66fde6d628d98a6b2->doDisplay(Array, Array) (Line: 394)
Twig\Template->displayWithErrorHandling(Array, Array) (Line: 367)
Twig\Template->display(Array) (Line: 52)
__TwigTemplate_e934e56c1e459c359b150360c7169113->doDisplay(Array, Array) (Line: 394)
Twig\Template->displayWithErrorHandling(Array, Array) (Line: 367)
Twig\Template->display(Array) (Line: 379)
Twig\Template->render(Array, Array) (Line: 40)
Twig\TemplateWrapper->render(Array) (Line: 53)
twig_render_template('themes/cryptod/templates/node.html.twig', Array) (Line: 372)
Drupal\Core\Theme\ThemeManager->render('node', Array) (Line: 436)
Drupal\Core\Render\Renderer->doRender(Array, ) (Line: 204)
Drupal\Core\Render\Renderer->render(Array, ) (Line: 238)
Drupal\Core\Render\MainContent\HtmlRenderer->Drupal\Core\Render\MainContent\{closure}() (Line: 583)
Drupal\Core\Render\Renderer->executeInRenderContext(Object, Object) (Line: 239)
Drupal\Core\Render\MainContent\HtmlRenderer->prepare(Array, Object, Object) (Line: 128)
Drupal\Core\Render\MainContent\HtmlRenderer->renderResponse(Array, Object, Object) (Line: 90)
Drupal\Core\EventSubscriber\MainContentViewSubscriber->onViewRenderArray(Object, 'kernel.view', Object)
call_user_func(Array, Object, 'kernel.view', Object) (Line: 111)
Drupal\Component\EventDispatcher\ContainerAwareEventDispatcher->dispatch(Object, 'kernel.view') (Line: 187)
Symfony\Component\HttpKernel\HttpKernel->handleRaw(Object, 1) (Line: 76)
Symfony\Component\HttpKernel\HttpKernel->handle(Object, 1, 1) (Line: 58)
Drupal\Core\StackMiddleware\Session->handle(Object, 1, 1) (Line: 48)
Drupal\Core\StackMiddleware\KernelPreHandle->handle(Object, 1, 1) (Line: 191)
Drupal\page_cache\StackMiddleware\PageCache->fetch(Object, 1, 1) (Line: 128)
Drupal\page_cache\StackMiddleware\PageCache->lookup(Object, 1, 1) (Line: 82)
Drupal\page_cache\StackMiddleware\PageCache->handle(Object, 1, 1) (Line: 48)
Drupal\Core\StackMiddleware\ReverseProxyMiddleware->handle(Object, 1, 1) (Line: 51)
Drupal\Core\StackMiddleware\NegotiationMiddleware->handle(Object, 1, 1) (Line: 51)
Drupal\Core\StackMiddleware\StackedHttpKernel->handle(Object, 1, 1) (Line: 704)
Drupal\Core\DrupalKernel->handle(Object) (Line: 18)
  • Warning: Undefined array key 1 in Drupal\cryptocompare\TwigExtension\RemoveSpace::getcard() (line 3013 of modules/custom/cryptocompare/src/TwigExtension/RemoveSpace.php). 
    Drupal\cryptocompare\TwigExtension\RemoveSpace::getcard('
                    Contents
                    <ul class="article__contents-list"><li class="article__contents-item"><a class="article__contents-link link-pseudo" href="#h20">Bitcoin is disinflationary</a></li><li class="article__contents-item"><a class="article__contents-link link-pseudo" href="#h31">A stable currency?</a></li></ul>
    Advertisement
    
        
    
    
        
                
            

if (document.documentElement.clientWidth &gt; 767) {
if (!window.AdButler){(function(){var s = document.createElement("script"); s.async = true; s.type = "text/javascript";s.src = 'https://servedbyadbutler.com/app.js';var n = document.getElementsByTagName("script")[0]; n.parentNode.insertBefore(s, n);}());}
}



if (document.documentElement.clientWidth &gt; 767) {
var AdButler = AdButler || {}; AdButler.ads = AdButler.ads || [];
var abkw = window.abkw || '';
var plc666695 = window.plc666695 || 0;
(function(){
var divs = document.querySelectorAll(".plc666695:not([id])");
var div = divs[divs.length-1];
div.id = "placement_666695_"+plc666695;
AdButler.ads.push({handler: function(opt){ AdButler.register(183269, 666695, [728,200], 'placement_666695_'+opt.place, opt); }, opt: { place: plc666695++, keywords: abkw, domain: 'servedbyadbutler.com', click:'CLICK_MACRO_PLACEHOLDER' }});
})();
}

                                            

        
        
                
            

if (document.documentElement.clientWidth &lt; 767) {
if (!window.AdButler){(function(){var s = document.createElement("script"); s.async = true; s.type = "text/javascript";s.src = 'https://servedbyadbutler.com/app.js';var n = document.getElementsByTagName("script")[0]; n.parentNode.insertBefore(s, n);}());}
}



if (document.documentElement.clientWidth &lt; 767) {
var AdButler = AdButler || {}; AdButler.ads = AdButler.ads || [];
var abkw = window.abkw || '';
var plc666696 = window.plc666696 || 0;
(function(){
var divs = document.querySelectorAll(".plc666696:not([id])");
var div = divs[divs.length-1];
div.id = "placement_666696_"+plc666696;
AdButler.ads.push({handler: function(opt){ AdButler.register(183269, 666696, [336,280], 'placement_666696_'+opt.place, opt); }, opt: { place: plc666696++, keywords: abkw, domain: 'servedbyadbutler.com', click:'CLICK_MACRO_PLACEHOLDER' }});
})();
}

                                            

        
    
Conner Brown, a crypto enthusiast from Stanford University, wrote a lengthy <a rel="nofollow" target="_blank" href="https://medium.com/@Conner_/stop-calling-bitcoin-deflationary-84462cb90345">Medium post</a> where he debunks the myth about <a rel="nofollow" target="_blank" href="https://www.economist.com/free-exchange/2014/04/03/bitcoins-deflation-problem">Bitcoin being a deflationary currency</a>.&nbsp;
<a rel="nofollow" target="_blank" href="#">card</a>

Bitcoin is disinflationary

The thing is, many fail to realize the very definition of "deflation," which doesn't necessarily mean a decrease in the price of a certain asset. Instead, it is a decrease in the money supply.&nbsp;

<blockquote>
Deflation is not a decrease in prices itself, but a monetary phenomenon that&nbsp;sometimes causes&nbsp;decreasing prices.
</blockquote>

However, Bitcoin's supply is not going to decrease anytime soon given that the top coin is only estimated to reach a hard cap of 21 mln BTC in 2140. The level of inflation will be gradually reducing with each <a rel="nofollow" target="_blank" href="#/news/bitcoin-hash-rate-wont-drop-after-halving-if-btc-price-rises-above-20000-analyst">halvening event</a> (the most recent one is expected to take place in May 2020). Hence, BTC can be described as a disinflationary currency.&nbsp;

<blockquote>
The Bitcoin protocol is not inflationary or deflationary in the long run. It is instead programmed to be&nbsp;disinflationary, culminating in a constant monetary base without changes to the supply.
</blockquote>
<a rel="nofollow" target="_blank" href="https://medium.com/@Conner_/stop-calling-bitcoin-deflationary-84462cb90345"><em>image by&nbsp;@Conner_</em></a>
<a href="https://u.today/what-happened-to-bitcoin-and-what-happens-next">card</a>

A stable currency?

Because of Bitcoin's fixed supply, Brown expects&nbsp;the coin&nbsp;to stabilize in the future when it turns into&nbsp;a full-fledged asset. After <a href="https://u.today/heres-why-crypto-wont-solve-inflation-crisis-in-developing-countries">its price discovery phase</a>, the Bitcoin can become a store-of-value and compete with gold.&nbsp;

<blockquote>
With bitcoin functioning as a storage vehicle that cannot be diluted, the manic hunt for a “risk-free” safety from inflation will be a thing of the past, leading to more accurate and measured investment decisions.
</blockquote>

The "store-of-value" narrative has been dominating the global crypto conversation in 2019, but Bitcoin's wild price swings serve as a stark reminder that it is yet to become a safe haven asset.&nbsp;

Peter Schiff, one of the most prominent crypto critics, recently pointed out that the latest price increase was purely the result of <a href="https://u.today/bitcoin-whales-are-selling-btc-before-market-crash-peter-schiff">whale manipulations</a>.&nbsp;
') (Line: 1037)
Drupal\cryptocompare\TwigExtension\RemoveSpace->formatbody(Array) (Line: 54)
__TwigTemplate_75845256f703f5319a38e035b4af7dd9->doDisplay(Array, Array) (Line: 394)
Twig\Template->displayWithErrorHandling(Array, Array) (Line: 367)
Twig\Template->display(Array) (Line: 379)
Twig\Template->render(Array, Array) (Line: 40)
Twig\TemplateWrapper->render(Array) (Line: 53)
twig_render_template('themes/cryptod/templates/field--body.html.twig', Array) (Line: 372)
Drupal\Core\Theme\ThemeManager->render('field', Array) (Line: 436)
Drupal\Core\Render\Renderer->doRender(Array, ) (Line: 204)
Drupal\Core\Render\Renderer->render(Array) (Line: 474)
Drupal\Core\Template\TwigExtension->escapeFilter(Object, Array, 'html', NULL, 1) (Line: 874)
__TwigTemplate_625426e732c5f7a66fde6d628d98a6b2->doDisplay(Array, Array) (Line: 394)
Twig\Template->displayWithErrorHandling(Array, Array) (Line: 367)
Twig\Template->display(Array) (Line: 52)
__TwigTemplate_e934e56c1e459c359b150360c7169113->doDisplay(Array, Array) (Line: 394)
Twig\Template->displayWithErrorHandling(Array, Array) (Line: 367)
Twig\Template->display(Array) (Line: 379)
Twig\Template->render(Array, Array) (Line: 40)
Twig\TemplateWrapper->render(Array) (Line: 53)
twig_render_template('themes/cryptod/templates/node.html.twig', Array) (Line: 372)
Drupal\Core\Theme\ThemeManager->render('node', Array) (Line: 436)
Drupal\Core\Render\Renderer->doRender(Array, ) (Line: 204)
Drupal\Core\Render\Renderer->render(Array, ) (Line: 238)
Drupal\Core\Render\MainContent\HtmlRenderer->Drupal\Core\Render\MainContent\{closure}() (Line: 583)
Drupal\Core\Render\Renderer->executeInRenderContext(Object, Object) (Line: 239)
Drupal\Core\Render\MainContent\HtmlRenderer->prepare(Array, Object, Object) (Line: 128)
Drupal\Core\Render\MainContent\HtmlRenderer->renderResponse(Array, Object, Object) (Line: 90)
Drupal\Core\EventSubscriber\MainContentViewSubscriber->onViewRenderArray(Object, 'kernel.view', Object)
call_user_func(Array, Object, 'kernel.view', Object) (Line: 111)
Drupal\Component\EventDispatcher\ContainerAwareEventDispatcher->dispatch(Object, 'kernel.view') (Line: 187)
Symfony\Component\HttpKernel\HttpKernel->handleRaw(Object, 1) (Line: 76)
Symfony\Component\HttpKernel\HttpKernel->handle(Object, 1, 1) (Line: 58)
Drupal\Core\StackMiddleware\Session->handle(Object, 1, 1) (Line: 48)
Drupal\Core\StackMiddleware\KernelPreHandle->handle(Object, 1, 1) (Line: 191)
Drupal\page_cache\StackMiddleware\PageCache->fetch(Object, 1, 1) (Line: 128)
Drupal\page_cache\StackMiddleware\PageCache->lookup(Object, 1, 1) (Line: 82)
Drupal\page_cache\StackMiddleware\PageCache->handle(Object, 1, 1) (Line: 48)
Drupal\Core\StackMiddleware\ReverseProxyMiddleware->handle(Object, 1, 1) (Line: 51)
Drupal\Core\StackMiddleware\NegotiationMiddleware->handle(Object, 1, 1) (Line: 51)
Drupal\Core\StackMiddleware\StackedHttpKernel->handle(Object, 1, 1) (Line: 704)
Drupal\Core\DrupalKernel->handle(Object) (Line: 18)

Bitcoin Is Not Deflationary, According to This Crypto Analyst

Advertisement
article image
Alex Dovbnya
Conner Brown wants you to stop defining Bitcoin as a deflationary currency
Wed, 10/30/2019 - 06:18
Bitcoin Is Not Deflationary, According to This Crypto Analyst
Cover image via www.123rf.com
Read U.TODAY on
Google News
Contents
Advertisement

Conner Brown, a crypto enthusiast from Stanford University, wrote a lengthy Medium post where he debunks the myth about Bitcoin being a deflationary currency. 
card

Bitcoin is disinflationary

The thing is, many fail to realize the very definition of "deflation," which doesn't necessarily mean a decrease in the price of a certain asset. Instead, it is a decrease in the money supply. 

Deflation is not a decrease in prices itself, but a monetary phenomenon that sometimes causes decreasing prices.

However, Bitcoin's supply is not going to decrease anytime soon given that the top coin is only estimated to reach a hard cap of 21 mln BTC in 2140. The level of inflation will be gradually reducing with each halvening event (the most recent one is expected to take place in May 2020). Hence, BTC can be described as a disinflationary currency. 

The Bitcoin protocol is not inflationary or deflationary in the long run. It is instead programmed to be disinflationary, culminating in a constant monetary base without changes to the supply.

Bitcoin
image by @Conner_

A stable currency?

Because of Bitcoin's fixed supply, Brown expects the coin to stabilize in the future when it turns into a full-fledged asset. After its price discovery phase, the Bitcoin can become a store-of-value and compete with gold. 

With bitcoin functioning as a storage vehicle that cannot be diluted, the manic hunt for a “risk-free” safety from inflation will be a thing of the past, leading to more accurate and measured investment decisions.

The "store-of-value" narrative has been dominating the global crypto conversation in 2019, but Bitcoin's wild price swings serve as a stark reminder that it is yet to become a safe haven asset. 

Peter Schiff, one of the most prominent crypto critics, recently pointed out that the latest price increase was purely the result of whale manipulations. 

#Bitcoin News
About the author
article image
Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

related image Binance's New CEO Meets Khabib and Ronaldo, Major XRP Dev Hints at Mastercard Integration in Wallet Upgrade, This December Might Be Bullish for BTC: Crypto News Digest by U.Today
2023/11/28 17:17
Binance's New CEO Meets Khabib and Ronaldo, Major XRP Dev Hints at Mastercard Integration in Wallet Upgrade, This December Might Be Bullish for BTC: Crypto News Digest by U.Today
Valeria BlokhinaValeria Blokhina
related image Shibarium Faces Moment of Truth in This Key Metric
2023/11/28 17:17
Shibarium Faces Moment of Truth in This Key Metric
Godfrey BenjaminGodfrey Benjamin
related image Bitcoin (BTC) Price Set to Hit $40K After Dip, Wolfe Research Says
2023/11/28 17:17
Bitcoin (BTC) Price Set to Hit $40K After Dip, Wolfe Research Says
Alex DovbnyaAlex Dovbnya
Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Popular

Binance's New CEO Meets Khabib and Ronaldo, Major XRP Dev Hints at Mastercard Integration in Wallet Upgrade, This December Might Be Bullish for BTC: Crypto News Digest by U.Today
Binance's New CEO Meets Khabib and Ronaldo, Major XRP Dev Hints at Mastercard Integration in Wallet Upgrade, This December Might Be Bullish for BTC: Crypto News Digest by U.Today
Shibarium Faces Moment of Truth in This Key Metric
Shibarium Faces Moment of Truth in This Key Metric
Bitcoin (BTC) Price Set to Hit $40K After Dip, Wolfe Research Says
Bitcoin (BTC) Price Set to Hit $40K After Dip, Wolfe Research Says
Bitcoiner Michael Saylor Sparks Heated Discussion with 'Anti-Bear' BTC Tweet
Bitcoiner Michael Saylor Sparks Heated Discussion with 'Anti-Bear' BTC Tweet
Dogecoin (DOGE) Hits Five Million Wallet Mark in Remarkable Feat
Dogecoin (DOGE) Hits Five Million Wallet Mark in Remarkable Feat
Solana Dog Coin Bonk (BONK) Jumps 12% on Major Exchange Listing
Solana Dog Coin Bonk (BONK) Jumps 12% on Major Exchange Listing
DOGE Price Analysis for November 28
DOGE Price Analysis for November 28
XRP Price Analysis for November 28
XRP Price Analysis for November 28
DOGE Greatly Surpasses BTC and ADA, Here's What's Happening
DOGE Greatly Surpasses BTC and ADA, Here's What's Happening
Bitcoin (BTC) Price Floor Might Hit $41,200 in Months, Analyst Says Why
Bitcoin (BTC) Price Floor Might Hit $41,200 in Months, Analyst Says Why
Show all
Advertisement
Advertisement
AD