Inflation is when the value of money decreases over time, causing prices to gradually rise. So, the same amount of money buys a bit less as time goes on
Deflation means prices drop over time, so money can buy more. However, it often signals reduced demand or economic slowdown, which comes with its own challenges
In a deflationary society, prices drop over time and money increases in value, which might seem positive. However, it can also lead to reduced spending and investment, ultimately slowing economic growth and innovation
Inflation is when the value of money decreases over time, causing prices to gradually rise. So, the same amount of money buys a bit less as time goes on
And what is deflation?
Simple explanation.
Deflation means prices drop over time, so money can buy more. However, it often signals reduced demand or economic slowdown, which comes with its own challenges
How would a deflationary society work?
In a deflationary society, prices drop over time and money increases in value, which might seem positive. However, it can also lead to reduced spending and investment, ultimately slowing economic growth and innovation
How does BTC people plan on mitigating economic slowdown if we move to a bitcoin standard?
Many BTC advocates believe bitcoin’s fixed supply encourages disciplined saving, potentially reducing reactive spending swings. Meanwhile, fintech innovations and alternative financial tools might help keep liquidity and activity robust
Simply put. It's an economic situation where too many cash is chasing fewer goods.