Bitcoin is never deflationary... in order to be deflationary coins must be removed from the supply and destroyed. The only deflationary component of PPC is the destruction of fees. The inflationary rate of Bitcoin simply decreases over time and approaches zero.
Yes, but in comparison to USD, BTC is deflationary.
No.
Deflation is a contraction in the supply of money, and, as such, is the opposite of inflation. A decline in the price level is known as price deflation, but outside the Austrian School of Economics, this distinction is rarely made and the term deflation often refers to falling prices.
So even if you are ignoring the economical definition of inflation/deflation, you could only say that BTC is experiencing price
inflation in comparison to USD.
Bitcoin is absolutely deflationary once it approaches its limit because more people and goods are being produced yet not money in ciruclation to factor for that addition.
No, see above.
No it's not money that people value differently, its the other good which it is being exchanged for that's value changes for people.
Yes it is the value of the other good, which they trade for
money, thus requiring the value of the money to be match the goods!
You're confusing what changes in value, money is supposed to stay constant while different goods and services' worth in the eyes of potential buyers is what changes.
Interests rates do signal the state of the economy, but they shouldn't change the value of money itself, it just changes the value of what you can do with money in the economy. (ie: In a booming economy, there is more opportunity to make profits so entrepreneurs will be looking to get capital to get their businesses going.)
How do you suppose that money stays "constant" if its worth different amounts of goods?
What do you mean by "constant" value then?
Again, I think you're confusing money with price. Prices are what change in relation to each other, money is just a common unit that keeps them all related for easier processing by the brain (would be hard to remember things like 2 gallons of milk = 7 apples otherwise).
Again, I'm not confusing anything, but you
are confusing me!
If the price of goods change, then the value of the money you hold relative to those goods also changes! How could it be any different?
1 BTC = 2 Gallons of milk or 1/2 BTC = 1 Gallon of milk.
then suppose
1 BTC = 3 Gallons of milk or 1/3 BTC = 1 Gallon of milk
In this situation, the receiver of a BTC considers the value relative of milk as having appreciated.
But with some external force pegging bitcoin to 1 gallon of milk
No one is pegging anything, free market forces will always determine the correct price.
So we finally agree.
But if the price is determined by the market, the value will change, so I would still like to hear what you mean by money being of "constant" value.