Price inflation- It is defined as the value of the goods is decreased if the price of bitcoin increases. The annulised inflation rate in India was 3.8% till august 2015. Most of the people used WPI i.e wholesale price index for all the commodities. But now-a-days people use CPI i.e consumer price index to measure the rate in India.

Price deflation-It is defined as the value of goods when increased if the price of bitcoin decreases. It is the decrease in the price of goods and services. Deflation occurs when real value of inflation decreases to 0% that is negative. Therefore deflation increases the real value of money and regional economy. This allows one to buy more goods and services more with same amount of money.