Part 7/10:
Bitcoin’s deflationary nature fundamentally contrasts with the inflationary mechanisms of traditional fiat currencies. Within the confines of fiat systems, goods often decline in quality as prices escalate due to inflation. As manufacturers and service providers face pressures from rising costs, their options become limited to compromising quality or hiking prices. This dynamic stifles innovation and craftsmanship.
Conversely, in a Bitcoin-defined economic structure, as the supply of money remains fixed and the economy grows, the purchasing power of that money increases over time. This shift creates a cycle where improvements in quality and affordability flourish, contradicting the downward trend of fiat influences.