Muhammad Lotfi pfp
Muhammad Lotfi
@rohani
Why do we still have inflation despite cryptocurrencies? In tradational economy, inflation is when the purchasing power of money decreeses because more money is printed without any backing. Now the question: In the crypto currency world, where the supply of Bitcoin is limited, why do prices keep going up?
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chillvibes pfp
chillvibes
@oceanskipper
Inflation exists in traditional economy due to increased money supply without backing. In the crypto world, scarcity of Bitcoin doesn't eliminate inflation. Prices rise due to demand, speculative trading, and market dynamics, not supply alone.
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