Is deflation good for a coin? - page 3.

juragane

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Quote from: ShareAccepted on January 16, 2018, 08:03:48 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?

price deflation is not very good for coins like bitcoin or other digital currencies, because bitcoin digital currencies are very good and much in use for payments in cyberspace which makes payments more secure and convenient.

Hydrogen

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Quote from: Rinsend on January 16, 2018, 05:48:16 PM

but these two sides can be unstable.
because although supply is reduced, prices may not increase due to problems of cost constraints and other problems so demand does not increase.
and affect prices that will not increase

....

That's probably more of an issue with gold or precious metals whose supply is statically finite.

It may be far less of an issue with bitcoin. In cases where supply becomes an issue and coins are confirmed out of circulation, those coins can be digitally locked and the supply algorithm might be tweaked to issue additional coins to reach 21 M. Technically, that may not be feasible. Even discussions revolving around minor things like blocksize can be subject to a massive amount of internal dispute and public debate.

I think if it ever became a massive problem and everyone could agree more coins needed to be issued to increase supply, maybe something could be done. In which case being deflation wouldn't be as much of an issue as it would with gold or a precious metal standard.

Rinsend

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Quote from: Hydrogen on January 16, 2018, 05:41:40 PM

There may be two sides to the deflationary coin.

On one side, supply decreases. On the other side, the value of the coin increases as it becomes rare.

but these two sides can be unstable.
because although supply is reduced, prices may not increase due to problems of cost constraints and other problems so demand does not increase.
and affect prices that will not increase

Hydrogen

legendary

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There may be two sides to the deflationary coin.

On one side, supply decreases. On the other side, the value of the coin increases as it becomes rare. The two forces can mutually compensate to create a balance where they'll cancel each other out.

The main concern with deflation is scale, value and base unit. With 8 digits to work with on the right side of the decimal point, deflation becomes less of a concern.

With real numbers 1 bitcoin is only 1 segment. Using the 8 decimal places to the right 1 bitcoin becomes 100,000,000. That provides plenty of growth space for bitcoin's to be broken up into smaller fractional elements if the need arises, or under circumstances where bitcoin's go out of circulation due to deflation.

streetlight

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Deflation is good because it increases demand of the coin. People will always want to own Bitcoin.

But yes it can be bad as other users have mentioned because people don't want to spend the coins. And specially today with the high fees it means most people want to own bitcoins but not spend them.

Even with deflation we see the price drops many times.

IanDev

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Deflation is good, because when experts say people won't want to spend currency, they are talking about spending money for luxurious.

People are always going to spend money for food, energy, housing, and so on.

DrGuns4Hands

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Deflation time is good for some buyers who will avail bitcoin in cheap price. So when inflation time comes, the value of the bitcoin that you availed in lower price will gain and can be sold in a high price. Thats a concept and importance of taking oppurtunities in a good or bad times.

rynah011991

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Ultimately it really doesn't matter how many coins there are. The relevant issue is not the amount of coins, but rather the total outstanding value of all the coins when priced in another currency. On the other side, If price of bitcoin decreases somewhat good timing to invest and buy more bitcoin because maybe tomorrow the price will continuously rise up.

Granslam

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Coins now are going through a problem nowadays and its alarming. Even the deflation is good or bad for a bitcoin we cant do something about it because deflation is a normal thing on any coin in the market. We are the main factor why is this happening on the market now.

malikusama

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Quote from: shulio on January 16, 2018, 08:15:54 AM

If a coin aims to be used in trades or shopping it should not have a volitile price value and must have low transaction fees. Otherwise it will never used a trade medium.

Bitcoin will be used for trade at some time in the future but it needs so much development and improvement to solve scability and fee issues.

I agree that nowadays bitcoin is facing major scalability issues like long confirmation time and also high transaction fees,
it needs to improve in order to be use in stores and retailers etc. but you can't deny that for trading volatility of price is much needed,
and that's why bitcoin is perfect for trading purpose.
May be in future scalability issues could be resolved and we would able to use bitcoin in small transactions too like for shops and retailers.

Wallflower28

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I guess it is not good for the bitcoin to have either deflation or inflation. The volatility of its price is not about deflationary rather the popularity of bitcoin around the world.
We can say that it is little good for the bitcoin to have deflation but too much of it will cause of its crash or devaluation.

Canis Majoris

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Quote from: ShareAccepted on January 16, 2018, 08:03:48 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?

Bitcoin grows in price not because it is deflationary. As a matter of fact, it has been quite inflationary so far. New coins are created every hour (actually, every 10 minutes on average), so it is inflationary. It grows because demand exceeds supply and that can be true in respect to both inflationary and deflationary coins. If you really want to ask whether a small inflation is better than deflation for a currency, then I will likely agree with you.

BabyBoss

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Quote from: ShareAccepted on January 16, 2018, 08:03:48 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?

Since today or this month is the month of bitcoin's deflation this will be the best opportunity for us to buy bitcoin more because we know that bitcoin has more opportunity soon that it will going to rise or the so called inflation. Since there are stable deep of price now because of what Korea did about bitcoin soon I believe that there will become a sharply increase soon. Because bitcoin price is Fluctuation, sometimes it will go up and sometimes it will go down. Because it is decentralized coin.

lyledark10

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It would be nice to us if bitcoin has an deflation because the demand will get low. So that we can get more bitcoins

tutorroma

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Moderate deflation is beneficial to the preservation of wealth. But deflation is generally relative to development, and moderate inflation is necessary if it needs to grow at a high speed. Of course, from the point of investment in bitcoin, deflation is good.

shulio

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If a coin aims to be used in trades or shopping it should not have a volitile price value and must have low transaction fees. Otherwise it will never used a trade medium.

Bitcoin will be used for trade at some time in the future but it needs so much development and improvement to solve scability and fee issues.

ShareAccepted

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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?

Topic: Is deflation good for a coin? - page 3. (Read 545 times)