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Reverse inflation?

I purchased into this, largely as a result of it was simple to do in Venmo. I used to be not into BCH through the meltdown. Sorry to your loss if that was you.

So, I noticed the video the place the Prime Minister of St. Kitts mentioned his nation will undertake BCH as official forex. My thought right here is, fairly candy time to plop a down fee on a Caribbean trip. So I did.

Then I acquired to considering…
If I perceive appropriately, there are solely 21 million cash and there’ll solely ever exist 21 million. Is that appropriate? If not, appropriate me within the feedback and cease studying. Due to I’m mistaken about that, then the remainder of that is bunk.

Okay, facet observe for a second. When the US must fund a pure catastrophe or a warfare or no matter, it simply makes extra money. That implies that worthwhile stuff goes up in value as a result of there’s now extra money than stuff.

See the place that is main?

If there’s a mounted sum of money, then stuff ought to decline as a proportion of that cash as the cash turns into extra distributed proper?

6 thoughts on “Reverse inflation?”

  1. Yes, Bitcoin (and BCH) has a fixed supply, so there is no monetary inflation. No, that does not mean that Bitcoin is a shelter against inflation. You just need to look at the crypto markets response to the past year of inflation to see how absolutely ridiculous that idea is. Having a fixed supply means there is no inherent devaluation built into the system, but it does nothing to ensure that people want to hold the asset. If people don’t want the asset, you’ll figure out why monetary inflation is not the only thing that can affect the value of your money.


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