Unless more bitcoin is provably burnt or lost than is mined, it is NOT deflationary.
Discussion
Bitcoin *is* deflationary. Ask your grandpa about floppy disks.
It may be safe to assume that some will always become lost or abandoned below the dust limit, maybe less and less over time, but it’s there
The assumption is that productivity will increase. So there'll be more stuff but the same money supply. So prices will fall.
The supply of bitcoin only stops increasing after the mining subsidy hits zero.
Until then, it is by definition, inflationary.
Thanks Sherlock
You'd be surprised how many people need this clarification.
Potato potahdo
With all the shitcoins out there, you’re going to split hair on this? Waste of time. The point is the fixed supply. Not when the coins are mined.
Both the fixed supply and the inflation rate are part of the story. Half the supply was mined in the first epoch. Details like this are important. The rate of inflation of the circulating supply is steadily getting lower with every halving.
What point are you trying to make? I can’t tell.
Great point. You nailed it.
Yet
Ok nerd the proper term is disinflationary then