altcointrading.net
Published Oct 8, 2018

An opinion article about the argument against #Bitcoin / #cryptocurrencies being "deflationary"

First, Bitcoin is not deflationary by nature. But in effect it sometimes has deflationary characteristics in terms of buying power. It isn't always like that, changes in prices of goods get completely swamped in the volatilty of BTC, at least for now.

Even so, having a deflationary currency does not really hinder all buying nor it automatically brings about the death spiral. People just become  more careful about what they spend their money for when they know the "cash" doesn't have to lose in value if it is not spent. 

It seems the problem with "deflation" in case of Bitcoin is that the inflation/deflation rates are unpredictable. That doesn't sit well with cheap credit and debt getting predictably cheaper and cheaper with time...For an average user who holds their own keys and makes their own decisions there doesn't seem to be a big issue. 

As a summary the article mentions several unrelated industries that have been disrupted by the change in user engagement (or focus): It is apparently no longer the jackpot to plaster a brand name everywhere and expect people to line up and buy. People got used to judging value and doing their own research. That seems positive for cryptocurrencies - people who hold crypto need to be this aware and responsible for their own decisions.

Full article: https://www.thebusinessofcrypto.com/articles/should-we-fear-cryptocurrencies-as-deflationary/

News analyses, trading strategy and crypto security for those who are in crypto for more than the hivemind drama.

 
 
 

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