Deflation is not a problem for Bitcoin

Photo by Sammy Williams on Unsplash

Falling prices sound like a good thing, right? Well, they are, generally. Technological deflation is the most obvious example of good deflation. Laptops, cellphones, and smartwatches get cheaper over time. That’s not a bad thing. People don’t just stop consuming things because things are cheaper. Why? Because of time preferences. I’m not going to stop drinking coffee in the morning even if it will be cheaper in a year…