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Bitcoin has a defined supply of 21 million and there cannot be inflation to this value. The importance of having a stable supply cap ensures that all people who own Bitcoin understand their overall ownership of the currency.
However, technically it is possible for Bitcoin to experience inflation as more of BTC is mined (as does gold). But because the amount of new bitcoin is automatically reduced by 50 percent every four years, Bitcoin’s inflation rate will also decrease.
The theory behind Bitcoin as an inflation hedge is simple enough. The number of Bitcoin is limited to 21 million, while the number of U.S. dollars typically increases over time. With everything else being equal, if the supply of the U.S. dollar increases, the value of Bitcoin in dollars should also increase.
CZ Binance shared: Bitcoin and BNB don’t have inflation.
Binance Coin (BNB) just became a near-perfect deflationary asset in a world rocked by spinning-out-of-control inflation.
Community Response: Bitcoin doesn’t have Inflation. BNB on the other hand has inflation but is mitigated through a burning process. Is not the same, BNB uses an automation process to burn tokens and Bitcoin has a fixed amount for possible coins. Also, BNB is DPoS (a nicer name for PoA).
BTC is over for me. There is not the slightest thing that distinguishes it from other economic elements. Every negativity is a dump.
Please do not confuse the cryptocurrency market with its technology. No matter how limited the supply is, as soon as the demand decreases, the price drops. This is the dynamics of the stock market itself.
So, why we are going down then after the explanation of rates? Well, technically bitcoin generates new coins every 10 minutes via mining, so. They also seem to think a deflationary currency can’t cause massive inflation; however, if a currency is no longer useful, they tend to lose value. There are over a hundred thousand fixed supply tokens on various blockchains not worth anything at all.
So, these miners are not producing more coins? The amount of coins in circulation isn’t going up? How are total coins going to go from 18m to the cap of 21m then? It’s called inflation. Bitcoin has inflation of 1.75% per year now, but will eventually go to 0 towards 2140. That’s the difference.
Bitcoin 2021 to 2022 have been different, now it’s a toy for institution whales, how can we Hold if every 3 months you will get your entry price again and again. Remember to secure some profit mate. HODL is good before institution whales get in this market.
Yes, and the biggest whales are exchanges they manipulate every time I hope all centralized exchanges will be investigated and those who manipulate to go to jail if insider trades do this and all altcoins must be delisted because if BTC downs%2 all others %7-15 this is stealing people’s money.
