Replying to Avatar Weird Mike Jerkovic

that's the build in inflation, it gets less every 4 years. after the last Bitcoin has been mined the inflation stops.

How would you call it if not inflation?
Avatar
Pablo Xannybar 2y ago

Inflation means a decrease in spending power. This doesn't happen as a result of new Bitcoin being mined.

New Bitcoin enters circulation, less and less each halving as you said, but the total amount of 21 million is priced into the value of BTC.

The fixed supply is why it isn't inflationary.

Reply to this note

Please Login to reply.

Discussion

Avatar
Weird Mike Jerkovic 2y ago

it is inflationary cause you don't have the 21M yet.

Inflation stops when the last Bitcoin is mined.

Avatar
Pablo Xannybar 2y ago

It's still not inflation because the very definition of inflation requires a decrease in spending power, i.e. a devaluation of the currency. This is not the case with Bitcoin.