Replying to Avatar imnuso

Gold has a capped supply. It’s just unknown. So it keeps inflating because inflation always refers to actual supply in the here and now and not to imaginary supply in the future.

Bitcoin could have very well failed in its early years. Would it then have been inflationary or deflationary?

If future capped supply makes a money deflationary, how do you measure or even call future increase in deflation by lost coinage?

The definitions fit. They have to be applied correctly though.
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₿² 1y ago

I keep telling people Bitcoin has inflation too it’s just on a special schedule called the BLOCK REWARD 😬

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imnuso 1y ago

Yeah. Bitcoin just feels deflationary in contrast to fiat and given how certain one can be on its fixed supply.

Understandable mistake to think it’s already non-inflationary but realistically this will just a few halving before end of block subsidies be the case.