Deflation based currency such as Bitcoin to counter promote economy.

[hatshepsut93]

Maybe it is true theoretically, but on practice Bitcoin is ridiculously far from affecting the global economy, and we'd need a high level of Bitcoin adoption to start observing such affects, probably something like 20% and more. Right now maybe 1-2% of global population uses Bitcoin, and they just use it from time to time, since it's nearly impossible to go 100% crypto right now. Right now there's no reason to worry about it, and there are other more important problems that need to be solved - removing supply is theoretically possible and can be done if enough people will support it.

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[deisik]

Currently, all major currencies issued by the government have natural inflation of about 2%.
Bitcoin, on the other hand, is much different, it, in fact, does not have any inflation but deflation.
Bitcoins are created less and less and the number of users does not affect the quantity of creation of Bitcoins.

Inflation on a low level promotes spending while deflation in Bitcoin promotes holding...

My question is, would an economy with a deflation based currency such as Bitcoin work?

There is nothing "natural" about it, its induced, often by old fashioned money printing. Because of the reigning lies of the mainstream schools of economy, lately the Chicago one.

If you want to understand how deflationary currency can work, you have to drop those debit mongers and study the Austrian school. Then you will see how all fits into place

Could you please explain in a few words how everything fits into place?

The point is, do you understand yourself how the deflationary currency works? If you do, then it won't take you much to explain how. On the other hand, if you don't, then how can you direct us to something which you basically don't have an idea about and thus don't know yourself whether it works or not? Deflationary currency can in fact work long term but only if its negative effects are offset by technological advances and progress. In any case, such an economy would be lagging behind a more robust, small inflation based one

[BitHodler]

Maybe it is true theoretically, but on practice Bitcoin is ridiculously far from affecting the global economy, and we'd need a high level of Bitcoin adoption to start observing such affects, probably something like 20% and more. Right now maybe 1-2% of global population uses Bitcoin, and they just use it from time to time, since it's nearly impossible to go 100% crypto right now. Right now there's no reason to worry about it, and there are other more important problems that need to be solved - removing supply is theoretically possible and can be done if enough people will support it.

Even gold doesn't have that much of an impact on the global economy, and that while we're talking about an asset with a market cap of $8 trillion. I don't think Bitcoin will go further than gold in terms of usability.

People in well developed countries are mostly pretty keen on their local fiat currencies because they work exceptionally well. It's close to impossible to dent fiat's supremacy with how its offering more and more convenience.

Bitcoin offers less and less convenience because it just isn't useful as daily form of money, and it's getting more expensive to use year after year due to the increase in adoption.

[wahyu wida]

Maybe it is true theoretically, but on practice Bitcoin is ridiculously far from affecting the global economy, and we'd need a high level of Bitcoin adoption to start observing such affects, probably something like 20% and more. Right now maybe 1-2% of global population uses Bitcoin, and they just use it from time to time, since it's nearly impossible to go 100% crypto right now. Right now there's no reason to worry about it, and there are other more important problems that need to be solved - removing supply is theoretically possible and can be done if enough people will support it.

Even gold doesn't have that much of an impact on the global economy, and that while we're talking about an asset with a market cap of $8 trillion. I don't think Bitcoin will go further than gold in terms of usability.

People in well developed countries are mostly pretty keen on their local fiat currencies because they work exceptionally well. It's close to impossible to dent fiat's supremacy with how its offering more and more convenience.

Bitcoin offers less and less convenience because it just isn't useful as daily form of money, and it's getting more expensive to use year after year due to the increase in adoption.

Fiat currencies that receive support from the government are familiar to the public. and also this currency that is declared valid by the government for daily transactions. I think bitcoin is allowed to be an alternative payment besides Fiat, it has become a very good achievement

[ajaymukund]

Currently, all major currencies issued by the government have natural inflation of about 2%.
Bitcoin, on the other hand, is much different, it, in fact, does not have any inflation but deflation.
Bitcoins are created less and less and the number of users does not affect the quantity of creation of Bitcoins.

Inflation on a low level promotes spending while deflation in Bitcoin promotes holding...

My question is, would an economy with a deflation based currency such as Bitcoin work?

It really doesn't work as well as what people think. Inflation is required to motivate people to work harder, deflation should also occur when the economy is in recession. Of course, we should balance it and a stable economy is always what financial planners dream of.
Therefore, the world needs two types of market exist. 1 is the crypto market, 2 is the other types of financial markets.

[indrakusumaindra]

No government would completely depend on BTC as their primary source of payment since that would be a foolish choice here. BTC is still an extremely volatile currency due to which it is highly unstable and many basically view it as an asset primarily.

yes bitcoin is very volatile and bitcoin totaly not a way to fight deflation cause the value is not stable and not good for daily transactions, and i do think bitcoin is more like an asset rather than currency.

[salty]

My question is, would an economy with a deflation based currency such as Bitcoin work?

As long as there are speculators and exchanges that speculate on prices, I can say that no economy will work effectively.And it's not about inflation or deflation at all.

[magneto]

Currently, all major currencies issued by the government have natural inflation of about 2%.
Bitcoin, on the other hand, is much different, it, in fact, does not have any inflation but deflation.
Bitcoins are created less and less and the number of users does not affect the quantity of creation of Bitcoins.

Inflation on a low level promotes spending while deflation in Bitcoin promotes holding...

My question is, would an economy with a deflation based currency such as Bitcoin work?

A deflationary currency would imply that the supply is shrinking, which is simply not true.

The term you're looking for is disinflationary, which means that the supply is growing at a rate that is slowing down. And from a technical perspective, you will never see negative inflation with bitcoin (discounting lost coins).

Bitcoin has already proven that it will work as a decentralised currency, so I don't really get where you are coming from, if we take into consideration the sheer amount that has been settled over the network. I don't think that a disinflationary system is a disadvantage at all, in fact it's probably the polar opposite.

[Kimonoe]

Currently, all major currencies issued by the government have natural inflation of about 2%.
Bitcoin, on the other hand, is much different, it, in fact, does not have any inflation but deflation.
Bitcoins are created less and less and the number of users does not affect the quantity of creation of Bitcoins.

Inflation on a low level promotes spending while deflation in Bitcoin promotes holding...

My question is, would an economy with a deflation based currency such as Bitcoin work?

A deflationary currency would imply that the supply is shrinking, which is simply not true.

The term you're looking for is disinflationary, which means that the supply is growing at a rate that is slowing down. And from a technical perspective, you will never see negative inflation with bitcoin (discounting lost coins).

Bitcoin has already proven that it will work as a decentralised currency, so I don't really get where you are coming from, if we take into consideration the sheer amount that has been settled over the network. I don't think that a disinflationary system is a disadvantage at all, in fact it's probably the polar opposite.

with limited supply it does allow bitcoin to avoid disinflation, but not all are profitable. with its anonymity, more and more crimes will not be revealed in the world of cryptocurrency

[juperos]

Currently, all major currencies issued by the government have natural inflation of about 2%.
Bitcoin, on the other hand, is much different, it, in fact, does not have any inflation but deflation.
Bitcoins are created less and less and the number of users does not affect the quantity of creation of Bitcoins.

Inflation on a low level promotes spending while deflation in Bitcoin promotes holding...

My question is, would an economy with a deflation based currency such as Bitcoin work?

That is definitely not. A normal economy will have inflation and deflation only happens when the central bank changes its money supply plan.
But I think the crypto market was born as a blessing for the world. This is a deflationary market and the financial market out there is inflation. so both should be reconciled and should be recognized in all the world.
Bitcoin will solve the economic problem when the recession begins. it is considered a support tool and people do not have to worry about how to spend it properly.