All cryptocurrencies are inherently deflationary because one example of an attempt at a cryptocurrency (BTC) is inherently deflationary?

If you have a limited supply of currency in a growing economy, it's inherently deflationary. So far I haven't seen proposals for cryptocurrencies that can grow as a function of the underlying economy. Maybe there are some.

All current attempts at cryptocurrencies, of which there are very, very many have been inherently deflationary. Can you point me to a single one either current or even planned that isn't? We are discussing the real world.

Both Ether and Monero are uncapped and deflationary. So 2 out of the top 10 at the moment. I didn't bother checking beyond that.

The only way cryptocurrency would be a straightjacket on the economy is if there were only one cryptocurrency. Actually there are hundreds, and it's trivial to make more. Rather than a digital gold standard, we have a system of competing privately-issued currencies, which Hayek advocated in his book The Denationalization of Money.

> Actually there are hundreds, and it's trivial to make more.

Good argument. But people will slowly realize that, to introduce good innovations in new blockchains, they should be setup as side-chains, to not create inflation in the crypto world.

Maybe. I'm just saying cryptocurrency won't give us deflationary constraints, since we can always create new currencies if we want to. If it turns out we do fine just sticking with a few main ones, that's ok too.

What's the analogy of a fiscal straight jacket mean? BTC value could increase indefinitely but you can always trade smaller and smaller fractions of BTC.

You have a finite amount trying to represent a growing economy. Work yesterday becomes worth more than work today and the fruits of economic output are retained by those who hold currency.

The 'main reason' BTC is deflationary is because it's not used as a currency, and as prices rise, people want to 'hold' thereby creating less liquidity etc.

It's a funny thing to watch.