Is deflationary currency bad?
I've heard about deflationary currency and I'm wondering if it's a bad thing. I know inflation can be problematic, but what about deflation? Is it detrimental to an economy or can it actually be beneficial?
Why is deflationary currency bad?
I'm curious about the negative impacts of a deflationary currency. Why is it considered undesirable for a currency to experience deflation?
Is bitcoin a deflationary currency?
As a financial and cryptocurrency expert, I must inquire further into the nature of Bitcoin as a potential deflationary currency. Can you elaborate on the economic principles that underlie this claim? Does Bitcoin's fixed supply, for instance, contribute significantly to its deflationary tendencies? Are there any other key factors, such as its decentralized nature or limited transaction throughput, that also play a role? Furthermore, how does Bitcoin's deflationary nature potentially impact its adoption as a global currency? Finally, are there any risks associated with a deflationary currency that investors should be aware of? Thank you for your insights.