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Bitcoin Is Not Deflationary, According to This Crypto Analyst

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  • Alex Dovbnya
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    Conner Brown wants you to stop defining Bitcoin as a deflationary currency

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

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

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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

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an 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.

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Bitcoin Fees Could Exceed $100 in 2020: Blockchain Capital

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    Bitcoin could hit a new all-time high with network fees exceeding $100 in 2020, according to Blockchain Capital

Bitcoin Fees Could Exceed $100 in 2020: Blockchain Capital
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Blockchain Capital's Spencer Bogart has recently published a list of 2020 predictions for cryptocurrency predictions. The most remarkable one concerns Bitcoin fees that are expected to surpass $100 next year due to the growing demand for transactions.

Back in December 2017, during the heyday of crypto, the average Bitcoin transaction fee increased to $55. As of Dec. 12, 2018, it is just at $0.52, BitInfoCharts data shows.    

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Bitcoin blast past a new all-time high 

According to Blockchain Capital, Bitcoin is set to experience another price rally in 2020 that could push its price above the current all-time high of $20,000. However, it is very unlikely to touch reach $1 mln (sorry, John McAfee).  

The crypto community expects the BTC price to skyrocket because of the upcoming halvening after the enormous returns of the previous two events. This time around, the reward for each mined coins will be decreased to just 6.25 coins. 

As reported by U.Today, the famous stock-to-flow model, which measures the coin's value by determining its scarcity, would be invalidated if Bitcoin didn't surge past the $100,000 mark before December 2021. 

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Privacy coins get delisted 

In the meantime, Blockchain Capital suggests that 2020 is going to be a tough year for stablecoins. Major exchanges could be forced to delist the likes of Monero (XMR), Zcash (ZEC), and other anonymous cryptocurrencies due to growing regulatory pressure. 

The writing is already on the wall. ZEC, which recently reached a new all-time low, was delisted from Coinbase UK back in August. In October, OKEx Korea moved to delist all major privacy coins but later decided to review its decision.     

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an 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.

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