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In economics, deflation is a decrease in the general price level of goods and services ... This allows one to buy more goods with the same amount of money over time.
Most Economists generally believe that high rates of inflation and hyperinflation are caused by >an excessive growth of the money supply.
At the moment there is really an excessive growth of Bitcoin supply - in the past 4 years there was mined over 12 millions of bitcoins and will continue with every block rewarded by c. 2140 when all bitcoins are expected to be mined. So there will be only transaction fees as block rewards, which will end the growth of the units supply.
I consider Bitcoin as a 97% deflationary currency until 2140, because there are still new bitcoins generated until 2140.
So we know the damages that inflation causes. There is actually a 100 TRILLION dollar note in Zimbabwe, and its completely worthless.
Many of the technologies that make fly really valuable , you cannot see, as it is not 1 thing. But most importantly, what makes a currency valuable is trust.
Fly was born in August 2015, that makes fly around 1.5 years old. Whats more is it proven over time, that its a safe place to store you funds and earn some nice interest without inflationary problems.
There are many measures I took from day one to reward users handsomely , and at the same time keep inflation to a very low level. Not an easy thing to do at all, but I pulled it off.
Now, here is my point. In the very near future people will be seeking a safe place to store their btc. Holding btc now is a bad idea, because there will be a correction as it has spiked up too fast, therefore it will come back down just as hard as it spiked. This is a normal correction and expected. So, if people hold bitcoin now, they will actually lose. So fly is a proven safe place to store funds and generate nice interest without the worry of inflation
I also control about 1/2 of the money supply, and I might sell a few coins a month, maybe. I wont destroy all of the work and time I have put into fly. I hold such an enormous amount because 1. I know for a fact fly will go into the multiple dollars range, and 2. It prevents others from massive dumpage. To understand more about inflation I wrote an article about it a few years ago on my site, that I believe everyone should read. To understand inflation and deflation is enormous power in crypto. Fly is centered around VERY low inflation , while paying nice interest rates. THAT is what makes it unique.
But before you read my article, let me brighten your day :
Here is my article from 2 years ago: (Soure: http://bitcoinlasvegas.net/revisiting-old-coins-can-they-be-more-profitable-now-even-after-they-have-lost-most-of-their-value/)
Theres an old saying that has been around well before cryptocurrency, and has been around about as long as money itself: “Never say never”. When I understood proof of stake, I knew right away my plan was to invest in all of them, and and did. Ive always been brilliant with money, but I had no concept of how to handle holdings that had 100% apr interest, 500% apr interest, 750% apr interest and even got as high as 10,000% interest per year (snowballs). We make our decisions based on our experience in the past. My experience is the past told me high interest is always good. What I really didnt take into consideration is I had never dealt with interest rates of this magnitude before. What I didnt know is currencies with ultra high interest rates needed to be handled a different way. Different than anything I had worked with before. What I didnt consider at all was inflation. That one factor trumps all other factors, and I thought that investments that had 750% per year could “outrun” inflation, while at the same time the 750% annual return was making the investment less valuable due to inflation. Consider this: EVERYONE IN THE WORLD wakes up tomorrow with 1 million dollars in cash in the middle of your living room floor. The biggest pile of benjies youve ever seen.
So now your RICH!!! Right? WRONG! Your more poor NOW, than you were before!! You are actually in the worst financial position possible! But wait, Ive got fat stacks, I mean STUPID money! Ya, and so does EVERYONE else, so they DON’T want your money! HUH!? Youll probably try REALLY hard to spend this money, but you wont be able to. Everyone in the world also has more than they can ever spend! Money/currency is ONLY valuable, when you have it , and most others dont. The more money YOU have the less value you see in it, the LESS money you have the more value you see in it.
So you needed to understand that before I go further. When new high POS coins were released their value was very high because you needed to get these coins, because they multiply like rabbits. The more coins you had , the more they created. As time went on, the money supply that started at tens of thousands over a few months ended up in the tens of millions of coins. Everyone that had those coins that paid a high price for them at the release of the coin, couldn’t give them away as everyone else that had invested in that coin ALSO had tens of millions of coins. Suffice to say the value per coin dropped over 95% in some cases.
So now we are at another stage. High pos coins have inflated , some are so inflated that there is no hope, and no fix. I will make it a point NOT to mention specific coins that are horribly inflated as this article is not about hurting a coins reputation, or value. Its to help you understand cryptocurrency better, so you can make better decisions in the future.
This chart was taken today from Presstabs block explorer it shows the growth in the fly coin money supply. Notice the very slight tilt up in money supply, and for most of the year fly was at 50% POS!!!, then it went to 35% POS, but the coins were generated at a VERY slow pace.
Vegas
