{"id":11823,"date":"2022-05-25T12:46:22","date_gmt":"2022-05-25T10:46:22","guid":{"rendered":"https:\/\/satt-token.com\/blog\/?p=11823"},"modified":"2022-05-25T12:54:18","modified_gmt":"2022-05-25T10:54:18","slug":"deflationary-currency-crypto-glossary","status":"publish","type":"post","link":"https:\/\/satt-token.com\/blog\/archives\/11823","title":{"rendered":"Crypto Glossary : Deflationary currency"},"content":{"rendered":"\n

A deflationary currency is one in which the supply of coins is decreasing. Simply put, as the number of coins in circulation decreases, the value of each coin increases.<\/p>\n\n\n\n

Deflation can be achieved in many ways. It includes burning<\/a> a part of a newly produced coin, buyback and burn, buyback and hold, and many others.<\/p>\n\n\n\n

The value of a dollar or euro falls over time because a central bank can issue new money at any time and has no limit on how much money it can create. <\/p>\n\n\n\n

For instance, a loaf of bread in the United States cost $0.09 in 1930, $0.36 in 1970, and $1.98 in 2013. Baking bread has not become more expensive. The dollar is simply less valuable now than it was decades ago.<\/p>\n\n\n\n

The value of a fiat currency falls over time as central banks produce more money, making it less scarce. Inflation is defined as an increase in the money supply (and a decline in the purchasing power of the currency). <\/p>\n\n\n\n

Today, all major fiat currencies are inflationary, and all economic assumptions are founded on an inflationary paradigm.<\/p>\n\n\n\n

There is no central bank creating money and managing monetary policy in the case of Bitcoin<\/a>. Instead, when it reaches 21 million coins, an algorithm runs out.<\/p>\n\n\n\n

Any BTC that is lost after that is permanently removed from circulation, implying that the total supply will decline over time. <\/p>\n\n\n\n

As a result, BTC will become more scarce and precious over time.<\/p>\n\n\n\n

\"Inflation<\/figure>\n\n\n\n

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Table des mati\u00e8res<\/p>\n