Deflation is not caused by halving (I mean maybe it is but that is not the topic) deflation is created because in reality bitcoin gets higher in value since there is less of it all the time.
There are always some people who send bitcoin to some unknown wallet or somewhere wrong and it is gone forever, people always say the max bitcoin there will be is 21 million but there must be at least a million bitcoin that is gone already to places that is no longer in use, sure if those people ever comeback they will be able to use it but more often than not there are not that many people that come back to it. So long story short deflation does exist but it is not because halving, halving only excels it and that's it, there is a deflation because instead of printing dollars like deal, we lose bitcoins instead.
From the start, bitcoin was present in a limited amount that is 21 million and out of which few coins also suffer loss due to blunders of holders. This limited amount automatically makes bitcoin deflationary in nature as we cannot increase its amount like governments do by printing more currency. Halving has nothing to do with deflationary. It is just a process where rewards get halved when 210,000 blocks are hit. There are always some people who send bitcoin to some unknown wallet or somewhere wrong and it is gone forever, people always say the max bitcoin there will be is 21 million but there must be at least a million bitcoin that is gone already to places that is no longer in use, sure if those people ever comeback they will be able to use it but more often than not there are not that many people that come back to it. So long story short deflation does exist but it is not because halving, halving only excels it and that's it, there is a deflation because instead of printing dollars like deal, we lose bitcoins instead.
