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RE: INFLATION AND DEFLATION EXPLAINED

in #anarchy8 years ago

Thanks for the comment- I had no idea you left this here, there's no notification system for Steemit yet, as far as I know.

Yes, BTC would be deflationary, due to the fact that there will only ever be a fixed number of units created.

Another one would be precious metals- as long as we're talking about physical metal. There is only so much and more can be obtained but only with significant capital expenditures in mining. Unfortunately, the market doesn't reflect this because traders have applied a fractional reserve lending model to the metals. (Google fractional reserve lending if you aren't familiar with that term.) So this results in a lot more trading units of gold and silver than actually physically exist to back them up.

So until this manipulated metals market fails, the only deflationary market is BTC or anything else like it that has limited supply. The problem with BTC is the small pool of participants. Hopefully that will drastically change.

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