Re:MasterCard to open up network to cryptocurrencies
by PragmaticPulp on Thursday February 11, 2021 @07:26PM
(#26109423)
Bitcoin, as a currency, is deflationary.
Bitcoin, as an asset, is wildly inflating. I could buy 1 BTC for $5K not long ago, but now it costs me almost $50K to buy the same exact amount of Bitcoin.
Inflation isn't strictly a function of the fed or the supply. Inflation can happen from demand-pull, which is definitely happening in the Bitcoin world.
Now that the cryptocurrency cat is out of the bag, the idea of a singular deflationary cryptocurrency only works if you pretend that all of the other cryptocurrencies don't exist.
Instead, we're seeing constant supply growth in the cryptocurrency space as new altcoins come online all the time. Even Bitcoin itself has been forked multiple times, effectively increasing the supply (albeit with caveats). I can trivially exchange BTC for BCH, so it doesn't really matter much that they're on different chains now.
The idea that cryptocurrency supply is fixed only works if you deliberately ignore all but 1 cryptocurrency.
Bitcoin, as an asset, is wildly inflating. I could buy 1 BTC for $5K not long ago, but now it costs me almost $50K to buy the same exact amount of Bitcoin.
Inflation isn't strictly a function of the fed or the supply. Inflation can happen from demand-pull, which is definitely happening in the Bitcoin world.
Now that the cryptocurrency cat is out of the bag, the idea of a singular deflationary cryptocurrency only works if you pretend that all of the other cryptocurrencies don't exist.
Instead, we're seeing constant supply growth in the cryptocurrency space as new altcoins come online all the time. Even Bitcoin itself has been forked multiple times, effectively increasing the supply (albeit with caveats). I can trivially exchange BTC for BCH, so it doesn't really matter much that they're on different chains now.
The idea that cryptocurrency supply is fixed only works if you deliberately ignore all but 1 cryptocurrency.