Is deflation good for a coin? | Bitcointalksearch.org

resty

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Quote from: ShareAccepted on January 16, 2018, 09:03:48 AM

Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?

Maybe our first impression about this deflation is negative but if we look to its brighter side we can see that it also brings positive things, we just need to explore it.
Like many people here in this forum, they tend to buy Bitcoin when the price dumps and they gain profit after all. I think, in this way, it will be good for Bitcoin for it will become still on the line although it drops hardly.

BabyBoss

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Sometimes deflation is the reason why there is inflation if there's no downs there is no ups. Well we know that it's only between up and down, after down it will going to rise again it will never stick into downs instead it will going to rise soon. It is really good in coin because this will be our opportunity to buy more and hodl more since we know that bitcoin is really potential coin.

torch2121

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For stock market deflation is the perfect opportunity to buy and you will earn as stocks go high in the future. Remember good things happens when waiting.

Dudeperfect

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I am really happy with the correction that took place a month ago because I believe that it will help Bitcoin to stabilize (sweeping greedy entities and bringing back the organic price of Bitcoin for that time) and grow in the long run. Deflation helps coin or stock to bring new force at lower level and down the road this force increases resulting in the increase of the potential. The hype was doing nothing but feeding greedy whales and deflation helps to prevent it.

goku1525

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Quote from: Sanugarid on February 10, 2018, 08:18:27 AM

Quote from: ShareAccepted on January 16, 2018, 09:03:48 AM

Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?

It depends on how will you look at it. For some users, it is n opportunity to invest and earn hugr profit from investing into it whenever its market value is falling. While others are scared of it that leads to oanic selling which is totally wrong. So like most of the things it has a positive and negative side depending on the perspective of a person. Also, deflation is a part of its volatility that is dabsolutely normal with cryptocurrencies.

Buy a coin when the msrket value is initially deflation.Deflation is normal ,consider things and have a positive thinking it will leads you to achieved goals.Take your time and open minded when it comes in trading .Sell those coins if the market value is inflstion then gain a lot of coins.

mu_enrico

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Quote from: ShareAccepted on January 16, 2018, 09:03:48 AM

Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?

The idea why bitcoin used limited supply is based on gold, so in that case deflationary will mimic real world situation
In that case, Bitcoin as a currency imo not really suitable for micropayments but more suitable as a store of value
We will see Bitcoin used as pegged main currency for altcoin's stability
And other micropayment-ready altcoin with more suitable inflation rate will emerge
BTC gold, ETH dapps, and (one or more) "misterious" altcoin as everyday currency

Carmen03

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In general economic theory consensus rules that deflation is bad for for the economy.Typically deflation is a sign of weakening economy. Prices fall due to less consumer demand. In turn these leads to an increase of unemployment numbers.

Sanugarid

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Quote from: ShareAccepted on January 16, 2018, 09:03:48 AM

Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?

It depends on how will you look at it. For some users, it is n opportunity to invest and earn hugr profit from investing into it whenever its market value is falling. While others are scared of it that leads to oanic selling which is totally wrong. So like most of the things it has a positive and negative side depending on the perspective of a person. Also, deflation is a part of its volatility that is dabsolutely normal with cryptocurrencies.

BTC-Market

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I will choose for example bitcoin coin. Bitcoin’s deflationary nature is ultimately good for the long term persistence of a high Why? Deflation encourages investment by stimulating saving—but not complete, indefinite saving, so the economy will not collapse from this deflation. Such investment only serves to strengthen the financial infrastructure being build around Bitcoin, thus reinforcing the Bitcoin value.Granted, Bitcoin is still in its very early stages and no real Bitcoin oriented money market exists; however, deflation still increases the Bitcoin value so that the incentive to build the required financial infrastructure remains in tact.

CHENIEN

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Deflation is a life situation of all cryptocurrencies, it is a way of balancing system on cryptocurrencies. In cryptocurrencies, deflation is highly needed, because without deflation system on cryptocurrencies it will result several losses and it can cause to all cryptocurrencies shutdown. Many people did not understand on the side of crypto management by using deflation system. Many people also complained about price movement. We are only a bitcoin user, our rights are beyond limits only, all we wants to do are followed the flow of management system which can developed on a good operation.

wewe123

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Quote from: dongyi17 on February 10, 2018, 06:08:14 AM

Others consider it good so that they can buy coin that someday they can trade it in when it has fully develop or when the time the value of bitcoin is up they can use it and gain for more possible profit however there are also think that it is not good, because they think it loses the value and what's the use...

It depends on the situation on the volatility of the bitcoin when it is the time of deflation ,it is good for the buyer of bitcoins but in the other side it is not good for the value of coins,and continous deflation could worry the bitcoin holders on what happen to the market index.

dongyi17

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Others consider it good so that they can buy coin that someday they can trade it in when it has fully develop or when the time the value of bitcoin is up they can use it and gain for more possible profit however there are also think that it is not good, because they think it loses the value and what's the use...

BillCoin

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Quote from: donalfonso on February 09, 2018, 12:57:10 PM

Deflation of a coin is not entirely bad, infact its good its good if it sets the coin back to its true value in terms of demand and supply,and the deflation is a means of correction especially when a coin has an over bloated price, extreme deflation is however dangerous and so are extremely high and overbloated price for a coin. both can lead to a crash

It will never get back to its true value because coins will always get lost, which means that people will stop using the deflated coin because it would be stupid to use something that has a deflation rate against something that has an inflation rate.
So people will hold instead of using, the whole financial system condition would be bad and the network is going to die because of lack of usage.
It won't do anything good for the coin at the long run.
Also, the ability to have a control on a currency is not a bad thing sometimes, it helps the government to protect it's citizens.

ronics

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A bitcoin is based on a growing demand for deflationary support to our.how it really leads a currency to people who do not need to use trading or transaction. We should do so to think of a emission rate of all crypto should use this coin many automatic mechanics to adapt to exist .because bitcoin uses trading and most have time for their open it.it is a real thing to develop and have the improvement to solve of stability and pay for issues.

Florc41

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Quote from: ShareAccepted on January 16, 2018, 09:03:48 AM

Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?
[/quote

Deflation happened when the change in prices turns low or negative, when the change in one period is lower than the previous period. When there is deflation the bitcoin people will hold their coin and tend not to spend to have reserves for possible financial losses and will wait for the prices to go up again. Actually it doesn't matter
how many coins there are but how much is the value of the coins when changed to other currency. Ironically bitcoin has no deflation problem because it is a channel for making normal currency transactions, taking over fiat currencies.

joms07

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Most of the bearish views on bitcoin deflation came from economists, who may a babysitting co-op that best explains how deflation might affect bitcoins.

donalfonso

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Deflation of a coin is not entirely bad, infact its good its good if it sets the coin back to its true value in terms of demand and supply,and the deflation is a means of correction especially when a coin has an over bloated price, extreme deflation is however dangerous and so are extremely high and overbloated price for a coin. both can lead to a crash

Hirameki

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Yes, maybe, because deflation of it means an opportunity for people to buy it, law of supply and demand, so when people buying price will go up, your investment on it willalso grow, so i think a deflation in a coin means a good opportunity for us to buy some coins.

badykvik

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Deflation simply is when low prices are purchasing larger goods and services. Deflationary trend on Bitcoin may be dangerous to a coin and may at the same time be good to go for a coin. The volatility of any coin depends on how effective and efficient the coin is at the exchange market to Bitcoin fans, Traders and Investors of Bitcoin. I am not skeptical about the benefits that shall be coin out of a deflated coin, where we shall be able to buy at low price for future storage, how about it's significance effect on the dumpers. Think twice and trade with discretionary cautiousness.

Silberman

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Quote from: ShareAccepted on January 16, 2018, 09:03:48 AM

Bitcoin is based on an increased demand an a deflationary supply, however that eventually leads to a coin that people don´t use to trade or to transact. What do you think that the emission rate of a crypto should be to be used as a coin? Any automatic mechanism to adapt exists?

The emission rate is defined already and it is doubtful is going to change, after all such a decision will affect every single user of bitcoin, even if the devs only changed the total number of bitcoins from 21 million to 22 million the fact that such a change can be made and accepted will mean that bitcoin is just like any other fiat and people will lose confidence in bitcoin.

Topic: Is deflation good for a coin? (Read 524 times)