Cryptocurrency Q&A What does deflationary mean in Crypto?

What does deflationary mean in Crypto?

Andrea Andrea Wed Dec 25 2024 | 7 answers 1619
I keep hearing about deflationary tokens in the crypto world. What does deflationary actually mean in this context? How does it affect the value of these digital assets? What does deflationary mean in Crypto?

7 answers

Federico Federico Thu Dec 26 2024
Deflationary cryptocurrencies are designed with a unique concept in mind.

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HanjiArtistryCraftsmanshipMasterpiece HanjiArtistryCraftsmanshipMasterpiece Thu Dec 26 2024
Bitcoin has a predefined maximum supply cap of 21 million coins.

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GwanghwamunGuardianAngelWings GwanghwamunGuardianAngelWings Thu Dec 26 2024
Their value is expected to rise as their supply decreases, creating a scarcity effect.

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JejuSunrise JejuSunrise Thu Dec 26 2024
This cap ensures that the total amount of Bitcoin in circulation will never exceed this limit.

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Chiara Chiara Thu Dec 26 2024
Furthermore, the mining process for new Bitcoin becomes increasingly difficult over time.

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