what would global deflantion do to Bitcoin?

[Dunamisx]

As we know already that bitcoin cannot be affected by inflation, so we should not expect much from global deflation that being a positive impact to creates for more demand on the adoption and use of bitcoin, and we know what it means, that once there is high demand, the price increases, therefore this should bring a positive impact to the bitcoin market value anytime it may occur.

[TheUltraElite]

Global deflation will never happen, the system is made in a way to make people spend more than they can save and they will continue to print more money, leading to inflation. This is the by-product of the normal human response.

Coming to AI, I dont see much productive use of AI that can reduce inflation, they will still need materials to build stuff and that costs money, along with bills to pay.

Hence I dont see how bitcoin is coming into this, but assuming that things get cheaper, the people who are selling it will take the profit and not reduce prices at all.

[Unsaint32]

Thanks for all the thoughtful perspectives. I agree that my five-year timeline is probably unrealistic—but we are also living in a period where long-term forecasting is unusually difficult because of AI. AI clearly has growing pains, but its potential is hard to ignore.

For example, I had never written code before, yet yesterday I used Claude to build a simple HTML app that lets me upload my investment portfolio CSV files and generates a report with percentage allocations and a pie chart. The whole thing took about 15 minutes.

During the last industrial revolution, human labor was the main bottleneck. In the next one, I suspect the bottleneck will be energy. At the same time, compute efficiency continues to improve every year. Taken together, it doesn’t seem impossible that we eventually reach something close to Star Trek–level abundance, where most people no longer care much about money in their day-to-day lives.

I do agree that Bitcoin would not disappear in that world—and it may even thrive in a different role. That’s my suspicion, though I’m aware I’m not entirely unbiased.

[Ivystar5]

When AI token costs go near zero and AI robots make products like pancakes, everything will become so cheap. When that happens in 5 years, inflation will become a thing of the past. What would that do to Bitcoin price?

It will do exact same thing it wol do with or without inflation but inflation will help bitcoin become a more solid currency to run to and the store of value of bitcoin is going to make it more better currency over all, people will hold bitcoin more and the price of bitcoin will skyrocket but just know that the worth of whatever will double so if the price of bitcoin doubles the value of products will remain at the same place it is today.

[Pale Knight]

When AI token costs go near zero and AI robots make products like pancakes, everything will become so cheap. When that happens in 5 years, inflation will become a thing of the past. What would that do to Bitcoin price?

It will do exact same thing it wol do with or without inflation but inflation will help bitcoin become a more solid currency to run to and the store of value of bitcoin is going to make it more better currency over all, people will hold bitcoin more and the price of bitcoin will skyrocket but just know that the worth of whatever will double so if the price of bitcoin doubles the value of products will remain at the same place it is today.

deflation could hurt bitcoin. if prices drop, people might not want to spend btc. but it depends on adoption. anyway, the store of value aspect matters. not sure how it plays out.

[AmoreJaz]

As we know already that bitcoin cannot be affected by inflation, so we should not expect much from global deflation that being a positive impact to creates for more demand on the adoption and use of bitcoin, and we know what it means, that once there is high demand, the price increases, therefore this should bring a positive impact to the bitcoin market value anytime it may occur.

Bitcoin surpassed a lot of trials already thru the years and though we don't know  what will happen next, but I am sure that one way or another, there will be adaptation in the market.

[Jewan420]

One substantiating narrative for bitcoin is the fiat money's buying power keeps going down. AI-induced abundance can flip that. By that, I mean it might make the fiat money's buying power go up. That's where I was coming from.

This is not happening in such a short time, maybe you have to wait for a few more decades. People are still hardworking and not interested in becoming AI dependent. Maybe in the next few generations everyone will become AI dependent, you mentioned this time!

What would that do to Bitcoin price?

Fiat currency and Bitcoin are two different types of economies and there is no relationship between the two. Especially when it comes to changes, no one affects the other. But when inflation increases, the demand for Bitcoin changes due to excess spending, resulting in a decrease in price. When the purchasing power of Fiat increases, people may have more opportunities to hold Bitcoin, resulting in an increase in price. The price of Bitcoin is mainly dependent on human demand, which is very unpredictable.