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10 sats \ 7 replies \ @Undisciplined 26 Nov 2023 \ on: Bitcoin: Living In A Deflationary World bitcoin
What's really wild is that Bitcoin isn't even deflationary yet. It's just much less inflationary and incapable of becoming more inflationary.
It is deflationary already! Markets don't price for current reality, markets always price for future expectations.
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That's a good point, but "inflation" and "deflation" are supply concepts not price concepts, despite being used colloquially to describe price trends.
Edit: you might argue that Bitcoin is deflationary, because the supply per person is shrinking as it gets more widely adopted.
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Good discussion! We clearly need a substack ''economy'' here on SN
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Important aspect. One day it'll be the uncorruptable economic constant which defines relative scarcity
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At some point, maybe soon, the rate of losing Bitcoin will exceed the rate of mining Bitcoins. It will then actually be deflationary.
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I can't imagine a person losing even one Sat if it reaches its price points in 10 or 20 years
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It might be a slow rate of loss, but stuff happens.
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