I do not know if we could talk about inflation when the Bitcoin rises in value, Bitcoin is not itself a currency, but rather a digital asset that tries to represent a currency.
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I do not know if we could talk about inflation when the Bitcoin rises in value, Bitcoin is not itself a currency, but rather a digital asset that tries to represent a currency.
I will try to be more careful in my wording. Whilst in general conversation the word "inflation" refers to rising prices, I was using it in the traditional sense, which is the "inflation of the money supply".
As we know, in the fiat world, the symptom of inflating the money supply was higher prices. The higher prices are caused by the money being worth less. The money is worth less because there is more of it.
In any monetary system, savers want to see as little expansion of the money supply as possible.
The same is true of bitcoin. We want to see a shrinking supply, or at least a supply which does not increase too much.