bitcoin is like usd it also cause inflation.

[cafter]

how bitcoin is deflationary currency ?

like a typical bear market lasts for a year or 2 year (i don't have enough experience of it) and assume that i bought 1 bitcoin at the price of $20000 , and after 1 month the bitcoin's price dropped 10% means my money get less valued by 10%. maybe after 1 year the price dropped ~50% the my hard earned money got value of $10000

what will happen if bitcoin is considered as global currency, it will never fall more than 5%-10% ?

bitcoin is also like usd? like when people buy more when the interest rate is low. then it causes inflation. and when government increase interest rate the usd valued at where it was previously.
it's also true with bitcoin it's price fluctuate and causes inflation?

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[tbct_mt2]

how bitcoin is deflationary currency ?

Bitcoin is not deflationary but inflationary. The inflation will stop in 2140 when all 21M bitcoins will be all mined by miners. However, it won't become deflationary after 2140 in theory and  by its design. No more new bitcoin will be mined after that but probably more bitcoins will be lost by people death, lost private key, send to wrong address, wrong chain.

it's also true with bitcoin it's price fluctuate and causes inflation?

Bitcoin is not related to inflation of fiat currency and it is not a cause of fiat currency inflation.

[stompix]

how bitcoin is deflationary currency ?

It's not, at most the term used is inherently deflationary.
Right now the amount of coins in circulation increases every day, basically we're printing coins in the same way other currencies, at a rate of around $27 million a day worth of coins, so right now there is nothing deflationary about it, but since at some point the supply on the market will not grow at all and even till then the adoption rate will/might outrun the issuance you can call it like that.

what will happen if bitcoin is considered as global currency, it will never fall more than 5%-10% ?

Bitcoin is nowhere near the stage where it can be called a global currency.
I keep telling people we're a long way from that and it is enormous space to grow, there are like ~ 20 million addresses with a balance that matters, 300k transactions per day, and only ~150 mils in the LN, those numbers would be low for an economy the size of Bulgaria, not a global one.
So by the time we reach global those swings of 5-10% will become less and less frequent, but swings of 5% are not that uncommon even for normal currencies right now. Remember last year when everyone said the EUR is going to die since it crashed from 1.04 to 0.95 /USD in a week?

[bitmover]

what will happen if bitcoin is considered as global currency, it will never fall more than 5%-10% ?

Bitocin is already a global currency. You can use it all over the world.

Any currency has volatility against other currencies
Even usd may fall more than 10%. Look at usd index for example, which is the price of usd against maby other currencies:


https://en.m.wikipedia.org/wiki/U.S._Dollar_Index

[cafter]

snip

maybe after long long long time bitcoin is considered as global currency,

assume i sold a laptop to you for 0.01 BTC and after some time the BTC fall 2% by price. (but, how we would compare bitcoin's value i assumed that the us dollar is still in the market)
then i got my 0.01 BTC and now i want to buy the laptop from you but you are saying i will charge you 0.01BTC+2% for this laptop. overall i made loss of 2% in this trade.(or profit when price rises)

is BTC value will stay at a constant? it's not possible because the btc will constantly go out of the circulation. and it will become more scarce.
so how will the price will be determined ?

it's really getting confusing.

[Upgrade00]

like a typical bear market lasts for a year or 2 year (i don't have enough experience of it) and assume that i bought 1 bitcoin at the price of $20000 , and after 1 month the bitcoin's price dropped 10% means my money get less valued by 10%. maybe after 1 year the price dropped ~50% the my hard earned money got value of $10000

You cannot take one isolated incident and use that as a bench mark to judge Bitcoin.
Inflation means a reduction in purchasing power of a currency causing increase in the value of goods and services. Conversely, deflation would be an increase in the purchasing power of a currency. We use total supply to judge this a lot cause it plays a vital role but that is not the singular factor that influences inflation or deflation.

Bitcoin is deflationary now, not when the supply is all checked out. Bitcoin historically increases in value and purchasing power over time owing to a gradual decrease in the amount of new coins being released, permanent loss of some coins, increase in demand against supply etcetera.

Deflationary does not mean stable or fixed. An asset can fluctuate but still maintain an overall upward trajectory.

[pixie85]

WHat's the difference between inflationary and deflationary, because you might not completely understand the difference.

how bitcoin is deflationary currency ?

like a typical bear market lasts for a year or 2 year (i don't have enough experience of it) and assume that i bought 1 bitcoin at the price of $20000 , and after 1 month the bitcoin's price dropped 10% means my money get less valued by 10%. maybe after 1 year the price dropped ~50% the my hard earned money got value of $10000

This is the problem, you look for deflationary features in a period of 2 years. It's not being done in relation to fiat currencies, so why try to do it with bitcoin? 2 years is nothing in the life of a currency.
Bitcoin is considered deflationary because when you take its total life cycle and calculate the average price gain, you'll see that every year it gained value. If you take a full cycle, so halving to halving, bitcoin went from something like 10 000 USD to 68 000 and is now at 30 000 so at the very least you've gained 300% in 4 years - deflation. At the same time your fiat money lost 5% a year on average so you're down 20% - inflation.

[BVeyron]

how bitcoin is deflationary currency ?

like a typical bear market lasts for a year or 2 year (i don't have enough experience of it) and assume that i bought 1 bitcoin at the price of $20000 , and after 1 month the bitcoin's price dropped 10% means my money get less valued by 10%. maybe after 1 year the price dropped ~50% the my hard earned money got value of $10000

what will happen if bitcoin is considered as global currency, it will never fall more than 5%-10% ?

bitcoin is also like usd? like when people buy more when the interest rate is low. then it causes inflation. and when government increase interest rate the usd valued at where it was previously.
it's also true with bitcoin it's price fluctuate and causes inflation?

Bitcoin has the mechanism to diminish inflation risks: its quantity is limited. But that's not the guaranteed way to stop inflation, since emission is not limited by money printing abilities only. For example, as it happens with USD, the different mechanism of inflation lies within the hidden danger of highly centralised money holders (tycoons, banks, governments, reserve systems). They can either hold money, or launch some small percents of what they have to "not rich people", the latter starting inflation without emission. And the actions of "rich establishment of the world" are highly centralised due to their collective will to keep others enslaved by dollar and other fiat money systems. And the same can happen if BTC replaces fiats: the tendency of "rich" to keep "not rich" under control by arranging money launching and holding rates can lead to fluctuations of currency values.

[mendace]

how bitcoin is deflationary currency ?

like a typical bear market lasts for a year or 2 year (i don't have enough experience of it) and assume that i bought 1 bitcoin at the price of $20000 , and after 1 month the bitcoin's price dropped 10% means my money get less valued by 10%. maybe after 1 year the price dropped ~50% the my hard earned money got value of $10000

what will happen if bitcoin is considered as global currency, it will never fall more than 5%-10% ?

bitcoin is also like usd? like when people buy more when the interest rate is low. then it causes inflation. and when government increase interest rate the usd valued at where it was previously.
it's also true with bitcoin it's price fluctuate and causes inflation?

Bitcoin is considered a deflationary currency because its inflation rate is limited and decreases over time.  Unlike fiat currencies, such as the USD, whose quantity can be increased or decreased at the discretion of monetary authorities, Bitcoin has an upper limit of 21 million units that can be mined. Bitcoin is unaffected by government or central bank monetary policies, which means that there is no monetary policy that can be used to manipulate its value.

[kryptqnick]

Bitcoin can lose value from time to time, and the loss can be comparable to the loss of value of fiat due to severe inflation. However, a fiat currency normally wouldn't bounce back, recover or grow in value later. A good result is basically when a fiat currency stops losing value at a high rate but continues losing more value over time at a small rate. With Bitcoin, however, a good result is when it not only fully recovers from the loss but also grows in value, setting the new records. In this sense, Bitcoin is very different from fiat currencies.

[darkangel11]

You're comparing a volatile asset over a short period of time to an asset that is much more stable and trying to decide which one of them is inflationary. It can't work!
Think of it like this. If you take US dollar index and pick a certain period like January to December 2022, you'll see that it was gaining value. Does that mean the currency is deflationary? Of course not!



Being inflationary or deflationary is a general feature. You can't pick a month or a year and decide if that makes the currency this or that based on the price action in that period.