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by zanny 3756 days ago
Bitcoin today is in no way deflationary in design. All the deflation comes from market adoption and speculation, not the protocol itself. The deflation only happens in a century when the protocol literally stops making new coins - which is a fundamental flaw in bitcoin, but it is not causing large deflationary effects right now.

You would be hard pressed to ever make a cryptocurrency where you could match monetary base inflation against adoption. You would basically need to tie the payout to the change in the number of wallets in existence, which is an exploitable vector.

I'd also argue pegging monetary base growth to popularity is a terrible idea. I would much rather peg it to monetary velocity - if the movement of coins is high, you print less. If coins slow down (ie, deflation) you increase generation to push spending. That would not outright stop deflation whenever adoption increases, but those are usually isolated spurts of growth - in the general case, you would inflate the currency.

It is also worth considering that I personally (as a holder of several btc, not much, but it is fun to buy stuff with) do not see bitcoin as a replacement for daily currency. It is a replacement gold - an arbitrary store of value that, as people want more of - only for the sake of other people having it, wanting it, and it being rare - deflates over time to act as a store of value outside traditional investment.