Is Bitcoin a deflationary currency?

As the supply of bitcoin increases over time, bitcoin can be considered inflationary using the traditional definition. As Bitcoin’s purchasing power increases over time, bitcoin can be considered deflationary, using the common definition. You can read about the Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes] in the given link.

Further readings:

  1. Inflation Targeting: Methods, Drawbacks and Benefits
  2. Consumer Price Index (CPI) – CPI and its Types [USPC Indian Economy Notes]

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