Ethan Michael ۵ ⌖ ⎔ ₅⁵₅⁵
Ethan Michael ۵ ⌖ ⎔ ₅⁵₅⁵ 1 minutes reading from Bitcoin

‘btc maxis get it wrong all the time, BTC deflation’

Deflation and Disinflation are two different words and I see btc maxis get it wrong all the time.

Let’s get into it 👇🧵

Deflation is when something’s TOTAL unit of accounting goes down over time.

Disinflation is when something’s rate of inflation goes down over time.

You see btc maxis get it wrong all the time, calling BTC deflationary.

An example of deflation in the world of cryptocurrency ..

would be PulseChain. When it launches, the total supply of PLS coins will be the most there ever will be for the rest of time.

With every transaction, 25% of the fee is burned, making Pulse deflationary since its total supply is shrinking over time.

BTC is disinflationary..

The rate at which BTC coins are distributed goes down with each halving event. BTC coins are still minted out of thin air, just less of them of now than previously.

BTC went from zero coins in existence to 19 million, making it inflationary.

It only took 11 years for BTC to..

to inflate to 19 million coins, but will take over 100 years to get to the final 21 million mark, making it disinflationary.

Anyways, thanks for reading! Hope you learned, remembered, or confirmed something!

Follow @RichardHeartWin for more juicy knowledge!

This post is based on this twitter thread.


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